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CAUSES 


OF    THE 


REDUCTION  OF  AMERICA!  TOOAGE 


AXD   THK 


DECLINE  OF  NAVIGATION  INTERESTS, 


BEING  THE 


REPORT  OF  A  SELECT  COMMITTEE 


MADE   TO 


THE  HOUSE  OF  REPRESENTATIVES  OF  THE  UNITED  STATES  ON 
THE  17TH  OF  FEBRUARY,  1870.. 


i/pvcA,  j 


WASHINGTON: 

GOVERNMENT    PRINTING    OFFICE. 
1870. 


41ST  CONGRESS,  I    HOUSE  OF  REPRESENTATIVES.       <  REPORT 
2d  Session.       (  \   No.  28. 


CAUSES  OF    THE    REDUCTION    OF    AMERICAN    TONNAGE. 

[To  accompany  bills  H.  R.  No.  12C1  and  1262] 


FEBRUARY  17, 1870. — Ordered  to  be  printed. 


Mr.  LYNCH,  from  the  Committee  on  the  causes  of  the  reduction  of 
American  tonnage,  made  the  following 

1  '..     REPORT.    V  ivT^-Y-v':'^!. 

Tlie  select  committee  appointed  by  resolution  of  the  House  of  Representa 
tives  March  22,  1869,  "to  inquire  into  and  report  at  the  next  session  of 
Congress  the  causes  of  the  great  reduction  of  American  tonnage  engaged 
in  the  foreign  carrying  trade,  and  the  great  depression  of  the  navigation 
interests  of  the  country,  and  also  to  report  what  measures  are  necessary  to 
increase  our  ocean  tonnage,  revive  our  navigation  interests,  and  regain  for 
our  country  the  position  it  once  held  among  the  nations  as  a  great  mari 
time  poicerf  have  considered  the  subject  referred  to  it,  and  agreed  to  the 
following  report : 

Your  committee,  in  prosecuting  its  inquiries,  have,  during  the  recess  of 
Congress,  held  sessions  at  the  cities  of  New  York,  Philadelphia,  Boston, 
and  Portland,  receiving  the  statements  of  merchants,  ship-builders,  ship 
owners,  and  insurance  agents ;  gentlemen  having  practical  knowledge 
and  experience  relating  to  the  matter  under  investigation.  The  ship 
owners  associations  of  New  York,  Philadelphia,  and  Maine,  and  the 
board  of  trade  of  Boston  were  represented  at  the  sessions  of  the  com 
mittee,  and  presented  the  views  of  these  various  associations.  Like 
information  and  evidence  have  been  received  in  the  sessions  of  the  com 
mittee  held  at  the  capitol  during  the  present  session  of  Congress. 
Circular  letters  have  been  addressed  to  gentlemen  engaged  in  the 
various  branches  of  business  connected  with  the  shipping  interests, 
requesting  a  statement  of  their  views  on  the  subject  under  inquiry, 
and  also  to  American  consuls  at  the  principal  ports  of  foreign  countries, 
asking  them  to  furnish  information  in  regard  to  the  condition  of  the 
mercantile  marine  of  those  countries. 

The  evidence  elicited  by  these  various  modes  of  inquiry  will  be  found 
under  the  head  of  testimony  taken  by  the  Special  Committee  on  Navi 
gation  Interests,  and  appended  to  this  report. 

The  committee  would  call  special  attention  to  the  exhaustive  paper 
furnished  through  the  State  Department  by  our  consul  at  London,  Hon. 
Freeman  H.  Morse,  and  also  to  the  tables  of  statistics  prepared  for  the 


II  NAVIGATION   INTERESTS. 

committee  by  Mr.  F.  A.  Walker,  Deputy  Special  Commissioner  of  the 
Kevenue,  and  by  Joseph  Niinmo,  jr.,  of  the  Treasury  Department,  who 
has  made  the  condition  of  our  shipping  interest  a  subject  of  special 
attention. 

THE  DECLINE  IN  AMERICAN  OCEAN  TONNAGE. 

In  order  fully  to  comprehend  the  extent  of  the  decadence  of  American 
shipping  and  the  causes  which  have  operated  to  produce  that 
decadence,  we  must  ascertain  the  points  at  which  the  prosperity  of  this 
interest  culminated,  and  trace  it  thence  back  to  the  source  of  that  pros 
perity,  and  forward  to  the  present  time  of  decay.  It  is  obvious  that 
whatever  causes  may  have  existed  prior  to  the  commencement  of  the 
late  rebellion  tending  to  produce  the  present  condition  of  our  shipping, 
their  effects  did  not  become  manifest  until  that  period.  Previously  there 
was  a  gradual,  steady,  and  healthy  increase  of  our  ocean  tonnage,  fluc 
tuating  with  the  fluctuations  of  business,  but  constantly  gaming  until 
the  year- 1861. 

The  increase  of  our. tonnage  engaged  in  the  foreign  carrying  trade 
from  1830  to  1840,  was  about  sixty  per  cent,  j  from  1840  to  1850,  seventy- 
five  per  cent.;  from  1850  to  1860,  sixty  per  cent.  This  latter  is  the  first 
decade  in  which  we  find  any  reliable  statistics  of  the  registered  tonnage 
of  Great  Britain,  to  enable  us  to  institute  a  comparison  between  it  and 
our  own.  In  this  decade  the  tonnage  of  Great  Britain,  employed  exclu 
sively  in  the  foreign  trade  of  that  country,  increased  about  forty  per 
cent.  Our  own  tonnage  engaged  in  the  foreign  carrying  trade,  reached 
its  highest  point  in  1861,  being  that  year  2,642,628  tons,  while  that  of 
Great  Britain  was  at  the  same  time  3,179,683  tons,  giving  us  the  second 
place  in  rank  among  nations  in  the  extent  of  our  ocean  tonnage,  while 
we  were  the  acknowledged  superior  of  all  in  the  proficiency  which  we 
had  attained  in  the  science  of  naval  architecture  and  in  the  efficiency  of 
our  mercantile  marine. 

It  is  difficult  to  realize  that  our  country,  which  in  little  more  than 
half  a  century  ending  in  1860,  had  reached  the  very  foremost  rank  of 
maritime  nations,  has  in  less  than  a  decade  lost  half  its  merchant  shipping 
and  all  its  maritime  prestage,  and  that  we  now  stand  debating  whether 
we  shall  without  a  struggle  yield  all,  and  become  the  mere  commercial  de 
pendency  of  the  nation  for  whose  advantage  we  have  been  thus  spoiled 
and  reduced. 

From  1861  to  1866  our  tonnage  engaged  in  the  foreign  trade  decreased 
from  2,642,628  tons  to  1,492,926  tons,  a  loss  of  1,149,902  tons,  or  more 
than  43  per  cent.,  while  Great  Britain,  in  the  same  time,  gained  986, 715 
tons,  or  more  than  30  per  cent.  Even  this  statement  does  not  show  the 
full  extent  of  our  relative  loss  as  compared  with  Great  Britain,  a 
very  large  percentage  of  the  increase  of  the  latter  in  tonnage 
having  been  made  in  steamers,  one  ton  of  which  class  of  vessels  is  equal 
in  efficiency  to  at  least  three  tons  of  sail  vessels,  while  by  substituting 


NAVIGATION    INTERESTS. 


HI 


largely  iron  for  wood,  as  building  material,  a  still  further  advantage 
was  gained  over  us  in  her  much  larger  class  of  iron  vessels,  doubly 
as  durable  as  those  of  wood.  The  increase  of  the  steam  tonnage 
of  Great  Britain  during  the  period  alluded  to,  was  275, 988  tons,  making 
an  addition  in  efficiency  over  our  sailing  ships  of  at  least  500, 000  tons. 
So  that,  taking  into  account  the  durability  and  efficiency  of  the  ton 
nage  added  by  Great  Britain  to  her  merchant  marine  from  I860  to  1866, 
it  would  probably  equal  an  increase  of  50  per  cent,  of  sail  vessels. 

RISE  AND  FALL  OP  THE  MERCANTILE  MARINE. 

The  following  tables  of  statistics  present  a  more  forcible  statement  of 
the  rise  and  fall  of  our  mercantile  marine,  and  furnish  a  more  striking 
illustration  the  effect  of  the  war  upon  our  own  shipping  and  that  of 
Great  Britain,  engaged  in  foreign  commerce,  than  any  other  language 
than  that  of  figures  can  furnish. 

Table  shoiving  the  tonnage  of  United  States  and  British  registered  vessels  employed  in  the  foreign 
trade  of  each  country,  during  the  years,  respectively,  1830,  1840,  1850,  and  from  1860  to 
1868,  loth  inclusive. 


Great  Britain.* 

Tear. 

United  States. 

In  the  foreign  trade. 

Partly  in  home  and  part 
ly  in  foreign  trade. 

Registered 
sail. 

Regist'd 
steam. 

Total  reg 
istered. 

Registered 
sail. 

Regist'd 
steam. 

Total  reg 
istered. 

Regis'd 
sail. 

Reg'd 
steam. 

Total 
reg'td. 

1830 

575  0.'.6 

1,419 

576  475 

1840 

895,  610 

4,  155 

899,  765 

1850 

1,  540,  769 

44,  429 

1,  585,  198 

2,  143,  234 

45,  186 

2,  188,  420 

222,341 

5,298 

227,639 

18CO 

2,  448,  941 

97,  296 

2,  546,  237 

2,  804,  610 

277,  437 

3,  082,  047 

226,  556 

29,  803 

256,  359 

1861 

2,  540,  020 

102,608 

2,  642,  628 

2,  866,  218 

313,  465 

3,  179,  683 

219,  522 

24,  924 

244,  446 

1862 

2,  177,  253 

113,  998 

2,  291,  251 

2,  993,  696 

328,  310 

3,  322,  006 

246,  479 

29,  463 

275,  942 

1863 

1,  892,  899 

133,  215 

2,  026,  114 

3,  246,  526 

371,201 

3,  617,  727 

284,  413 

33,  547 

317,  9CO 

18C4 

1,  475,  376 

106,  519 

,  581,  895 

3,  532,  242 

456,  241 

3,  988,  483 

268,  125 

36,  944 

305,  060 

1865 

1,  504,  575 

98,008 

,  602,  583 

3,  629,  023 

523,  698 

4,  152,  721 

282,  295 

43,225 

325,  520 

1866 

1,  294,  637 

198,  289 

,  492,  926 

3,  612,  973 

553,  425 

4,  166,  398 

278,  167 

47,  194 

325,  361 

1867 

1,  369,  917 

198,  115 

,  568,  032 

3,  641,  662 

608,  232 

4,  249,  894 

190,  846 

50,201 

250,047 

1868 

1,  343,  703 

221,  939 

,  565,  732 

3,  646,  150 

619,  199 

4,  265,  349 

240,  921 

52,  150 

293,  071 

*  NOTE.— This  table  includes  Channel  Island  vessels  hut  not  those  of  the  British  plantations.  The 
home  trade  signifies  on  the  coasts  of  the  United  Kingdom,  or  to  ports  between  the  limits  of  the  river 
Elbe  and  Brest.  The  foreign  trade  signifies  to  ports  beyond  such  limits. 

Registered  tonnage  of  United  States,  1860 2,  546, 237 

Registered  tonnage  of  Great  Britain  (exclusive  of  colonial) . .  3, 082, 047 

Total 5,  628,  284 


Registered  tonnage  of  United  States,  1868 1, 505,  732 

Registered  tonnage  of  Great  Britain,  1868 4, 265,  349 

Total 5,771,081 

If  to  this  we  add,  for  increase  in  steam  tonnage 500,  000 

6, 271,  081 


It  will  be  observed  that  notwithstanding  the  check  caused  by  the 
war  upon  the  production  of  the  crops  of  the  South,  which  furnished  so 


IV 


NAVIGATION  -INTERESTS. 


arge  a  percentage  of  our  exports,  the  aggregate  tonnage  of  the  United 
States  and  Great  Britain  engaged  in  the  foreign  carrying  trade  has 
increased  about  14  per  cent.,  while  from  the  position  of  nearly  an 
equal  in  tonnage  with  that  nation,  our  own  tonnage  had  dwindled  to 
less  than  one-third  of  that  of  Great  Britain. 

The  change  of  the  business  furnished  by  our  own  country  in  exports 
and  imports  from  American  to  foreign  vessels  is  still  more  striking,  as 
will  be  shown  by  the  following  table : 

A  table  showing  the  amount  of  American  and  foreign  tonnage  entered  the  ports  of  the  United 
States  from  foreign  countries  in  1830,  1840,  1850,  and  from  1860  to  186U,  both  inclusive. 


Fiscal  years. 

American  ton- 
nage. 

Foreign  ton 
nage. 

American  in  ex 
cess  of  fort-  ign 
tonnage. 

Foreign  in  ex 
cess  of  Amer 
ican  tonnage. 

1830 

967  227 

131  900 

835  327 

1840    

1  576  946 

712  363 

864  583 

1850 

2  573  016 

1  775  623 

797  393 

I860     .                         

5  921  285 

2  353  911 

3  567  374 

1861  

5,023,917 

2  217  554 

2  806  363 

1862 

5  117  685 

2  245  278 

2  872  407 

18G3    . 

4  614  698 

2  640  378 

1  974,  320 

1864 

3  066  434 

3  471  219 

404  785 

1865 

2  943  661 

3  216  967 

273  306 

1866 

3  372  060 

4  410  4°4 

1  038  364 

1867                                          

3  455  052 

4  318  673 

863  6°1 

1868 

3  550  550 

4  495  465 

944  915 

1869 

3*  402*  668 

5  347  694 

1  945  C26 

VALUE  OF  TONNAGE. 

The  estimated  value  of  the  tonnage  of  the  United  States  engaged  in 
the  foreign  carrying  trade  was,  in  1861,  $108,347,748 ;  the  estimated  gross 
yearly  earnings  of  which  was  33J  per  cent.,  or  $36,115,916.  In  1869, 
the  estimated  value  of  the  same  tonnage  was  $70,488,945,  and  the  esti 
mated  earnings,  $23,496,315 ;  a  net  loss  in  yearly  earning  of  this  inter 
est,  of  $12,619,601.  (Table  No.  XIV  of  the  Appendix.) 

The  increase  in  gross  earnings  of  this  class  of  tonnage  from  1850  to 
1860,  $14,719,397,  or  73  per  cent.  Taking  the  same  ratio  of  increase 
from  1860  to  1869,  say  65  per  cent.,  and  we  should  have,  in  1869, 
$57,417,643.  The  actual  amount  of  gross  earnings  is  $23,496,315,  or  a 
net  annual  loss,  in  consequence  of  the  decline  of  our  ocean  commerce, 
of  $33,921,328. 

Add  to  these  the  table  showing  the  relative  proportion  in  value  of  the 
imports  and  exports  by  American  and  foreign  vessels  to  and  from  the 
United  States,  (table  No.  XV  in  Appendix,)  and  we  have  a  complete 
epitome  of  the  deplorable  condition  to  which  our  shipping  interests  has 
been  reduced .  The  following,  from  the  table  referred  to,  shows  the  total 
foreign  commerce  of  the  United  States  in  1850, 1855, 1860, 1865,  and  1869 : 


Fiscal  year. 

Exports  and  im 
ports  in  Amer 
ican  vessels. 

Exports  and  im 
ports  '  iu   for 
eign  vessels. 

Total. 

1850   . 

6239  272  Q84 

$90  746  954 

&T50  037  038 

1855  

405  485  46° 

131  139  904 

5'56  C°r>  'HJ6 

1860 

507  247  757 

255  040  793 

1865  

167  4:>2  872 

437  010  1°4 

604  41°  *)(>6 

1869  .*.  

289  950  272 

586  492,  012 

876  442  yiJ4 

NAVIGATION   INTERESTS.  Y 

It  will  be  seen  by  the  foregoing  that  in  1850,  75  per  cent,  of  our  total 
exports  and  imports  were  shipped  in  American  vessels.  In  1855,  75  per 
cent,  in  American,  and  25  per  cent,  in  foreign  vessels.  In  18G9,  34  per 
cent,  in  American  to  66  per  cent,  in  foreign  vessels.  Onr  exports  have 
doubled  since  1853,  while  the  percentage  carried  in  American  vessels 
has  fallen  from  67  per  cent,  to  34  per  cent. 

Could  there  be  a  more  striking  refutation  of  the  assumption  that 
the  revival  of  our  shipping  will  follow  the  increase  of  our  exports, 
than  is  furnished  by  the  statistics  referred  to.  The  increase  of  our  ex 
ports  will  only  furnish  an  increased  business  to  foreign  ships  unless  we 
put  our  own  vessels  in  a  position  to  compete  with  them  on  equal  terms. 
It  is  estimated  that  more  than  60  per  cent,  of  the  registered  tonnage  of 
the  United  States  is  engaged  in  the  carrying  trade  between  foreign 
countries,  on  long  routes  carrying  the  bulky  cheap  freights,  while,  as  has 
been  shown  by  the  foregoing  table,  our  own  exports  and  imports  are 
passing  in  foreign  bottoms,  the  freights  going  to  enrich  our  commer 
cial  rivals,  and  to  swell  the  foreign  balances  against  us,  which  must  be 
settled  in  gold. 

VALUE  OF  IMPORTS. 

The  following  are  the  values  of  imports  into  the  district  of  New  York 
during  the  fiscal  year  ending  June  30,  1869,  with  estimated  propor 
tion  in  sailing  and  steam  vessels : 

Total  value  of  imports $295, 137, 415 

Of  which  estimated  proportion  in  sail 
ing  vessels 57,  867,  025,  or  19T6o°o7o  Per  cent' 

Proportion  in  steam  vessels 237,  270,  390,  or  80T3^>  per  cent. 

Total 295, 137,  415 

Estimated  proportion  in  American 
steamers 35, 441, 606 

Estimated  proportion  in  foreign  steam 
ers 201,  828,  784 

Total  in  steamers 237, 270, 390 

Or  nearly  seventy  per  cent,  of  the  imports  at  the  great  commercial  city 
of  the  country  in  foreign  steamers. 

There  are  now  running  regularly,  to  and  from  New  York,  89  foreign 
steamships,  the  aggregate  tonnage  of  which  is  205,338  tons.  The  in 
crease  in  this  class  of  vessels,  since  1860,  has  been  47  ships,  139,605  tons, 
or  more  than  two  hundred  per  cent.,  and  the  number  is  constantly 
augmenting  to  meet  the  increased  demands  of  business.  (See  table 
XXV  in  Appendix.) 

Estimating  the  freights  paid  at  eight  per  cent,  of  the  value  of  the 
cargoes  and  we  have  here  paid  to  foreign  carriers  of  goods  to  a  single 


VI  NAVIGATION   INTERESTS. 

port,  in  round  numbers,  sixteen  millions  of  dollars,  while  the  amount 
paid  on  outward  cargoes  will  probably  reach  half  that  sum,  making  a 
grand  total  of  twenty -four  million  dollars  annually  drawn  from  our  own 
people  to  support  the  steamships  of  foreign  nations,  which  steamships 
constitute  the  naval  reserve  of  those  powers. 

STEAMSHIP    LINES. 

At  present  the  whole  tendency  of  the  freighting  business  of  the 
world  is  to  seek  direct  routes,  and  by  steam  communication,  to  combine 
mail  and  passenger  with  merchandise  transportation.  The  long  and 
tedious  voyages  around  capes  are  avoided  by  connecting  oceans  either 
by  ship  canals  or  railways.  The  advantage  of  this  change  in  the  mode 
of  transportation,  in  addition  to  that  of  carrying  passengers  and  mails, 
is  that  it  furnishes  a  way  business  that  cannot  be  commanded  by  sail 
vessels  which  can  only  carry  advantageously  between  two  points. 

Great  Britain  availing  herself  of  the  use  of  steam  has  obtained  con 
trol  of  the  chief  of  these  direct  lines  of  ocean  communication,  and  in 
doing  so  has  occupied  the  shortest  routes  and  those  which,  without 
loss  of  time  or  distance,  afford  the  most  points  to  touch  and  tap  the 
trade  belonging  to  them. 

Between  America,  North  and  South,  she  has  nine  direct  lines.  Two 
carry  the  mails  between  the  United  States,  British  America,  and 
England.  Both  lines  start  from  Liverpool,  touch  at  Queenstown,  and 
sail  direct  to  New  York.  One,  however,  calls  at  Halifax.  To  feed  these 
lines  the  Cunard  Company  run  a  line  from  Halifax  to  Nassau,  which  is 
subsidized.  There  are  also  "  way"  steamers,  if  we  may  call  them  so, 
between  Halifax  and  Newfoundland,  the  Bahamas  and  New  York. 
There  is  a  line  between  Liverpool,  New  Orleans,  and  Balize. 

Three  lines  sail  direct  from  Southampton  to  the  Gulf  of  Mexico. 
One  to  Tampico,  Mexico,  another  to  Aspinwall,  the  third  runs  to 
Puerto  Cabello,  in  Venezuella. 

There  are  also  three  lines  sail  for  the  Atlantic  coast  of  South  America. 
One  to  Brazil,  stopping  at  Kio  de  Janeiro,  after  calling  at  the  lead 
ing  ports  to  the  north  ;  another  makes  Buenos  Ayres  its  stopping  place. 
The  third  runs  to  Montevideo.  These  lines  sail  from  Falmouth  and 
Southampton  direct,  taking  the  shortest  route  across. 

Panama  is  the  starting  point  for  four  lines  of  British  steamers.  One 
down  the  Pacific  coast  of  South  America  to  Valparaiso,  touching  at 
all  the  chief  ports.  Another  to  the  leading  places  in  Central  America.  A 
third  is  a  local  line  running  to  neighboring  points,  and  the  fourth  direct 
to  Wellington,  New  Zealand,  connecting  with  an  Australian  line  to 
Sydney  and  Melbourne. 

There  are  two  lines  along  the  West  coast  of  Africa,  both  starting  from 
Southampton,  one  going  to  and  from  the  Cape  of  Good  Hope,  touching 
at  St.  Helena  and  Ascension,  the  other  tapping  the  coast,  from  Cape 
St.  Vincent,  Portugal,  to  Sierre  Leone  and  other  points. 


NAVIGATION   INTERESTS.  VII 

Besides  a  number  of  short  routes  connecting  different  points,  the  greatest 
line  of  all  is  that  of  the  Peninsula  and  Oriental  Mail  Steamship  Com 
pany.  Its  point  of  departure  is  Southampton.  From  that  port  their  ves 
sels  go  to  Gibraltar,  through  the  Mediterranean,  touching  at  different 
points,  as  Malta,  &c.,  to  Port  Said,  through  the  canal,  the  Ked  Sea,  across 
the  Arabian  Sea,  to  Bombay  and  Ceylon.  At  the  latter  place  a  line  runs 
to  Australia;  there  connecting  with  a  line  already  mentioned,  running 
from  Panama,  and  thus  making  the  circle  complete.  The  general  route  of 
the  steamers  takes  in  all  the  leading  Indian  ports,  also  Singapore. 
Penang,  Hong  Kong,  and  Shanghai.  By  following  the  indicated  routes 
it  will  be  at  once  seen  that  they  leave  out  only  two  principal  regions ; 
Pacific  North  America  and  the  lower  portions  of  the  Indian  Archi 
pelago.  For  the  latter,  short  routes  from  point  to  point  are  being 
organized,  while  it  is  understood  that  this  great  company  propose  to 
unite  the  British  steam  marine  at  either  end  of  our  continental  railroad 
system,  by  establishing  a  competing  line  with  the  Pacific  Mail  Steamship 
Company  from  Shanghai  to  San  Francisco.  This  will  inevitably  be  fol 
lowed  by  another  line  from  San  Francisco  to  Panama.  This  extension 
of  lines  of  steamers  has  been  procured  mainly  by  means  of  liberal  subsi 
dies  paid  by  the  British  and  French  governments  for  carrying  the  mails. 

For  the  postal  service  they  perform  Great  Britain  pays  to  twelve  of 
her  principal  mail  steamship  companies,  in  the  form  of  an  annual  sub 
sidy,  £903,750,  or  $4,392,244,  besides  the  amounts  collected  for  postage 
over  from  other  principal  routes  and  a  number  of  connecting  lines, 
amounting  to  enough  more  to  make  the  entire  payments  at  least 
$5,500,000.  Of  this  large  sum  about  $2,000,000  is  paid  to  the  lines  con 
necting  with  the  American  Continents. 

The  French  government  is  even  more  liberal  than  that  of  Great  Britain, 
and  the  effect  of  their  policy  is  seen  in  the  establishment  of  several  lines 
of  the  finest  equipped  steamships  afloat,  even  rivalling  the  best  British 
lines.  The  French  government  pays  several  million  dollars  annually  to 
these  lines.  The  French  Transatlantic  Company  run  three  lines — to 
New  York,  to  the  West  Indies  and  Yera  Cruz,  and  to  Gaudaloupe  and 
Aspinwall.  It  receives  all  the  money  paid  for  postage  and  a  direct  an 
nual  subsidy  of  $1,000,000.  Besides  these  amounts,  the  French  govern 
ment  loaned  it  $5,000,000  for  ten  years  without  interest,  which  is  being 
returned  by  the  withholding  ten  per  cent,  of  the  postage  paid.  The 
subsidies  to  the  other  steamship  lines  are  on  the  same  scale,  having  re 
ceived  a  loan  as  part  of  their  capital,  and  all  are  paid  the  amounts  col 
lected  on  mail  matter  which  they  carry. 

Other  chief  lines  start  from  Marseilles  and  run  to  the  various  Medit 
erranean  ports,  the  French  colonies  of  Algiers;  and  one  of  the  finest 
appointed  lines  in  the  world,  Me'ssageries  Imperiale,  runs  direct  to  Alex 
andria  and  Port  Said,  through  the  Suez  Canal,  down  the  Eed  Sea, 
communicating  with  the  French  colonies  off  the  east  coast  of  Africa,  and 
thence  to  the  leading  ports  in  the  Indian  Seas  direct  to  the  two  or  three 


VIII  NAVIGATION    INTERESTS. 

points  which  yet  remain  in  French  possession,  thence  to  Saigoon  in 
Cambodia  or  Cochin  China.  The  present  terminus  is  Shanghai. 

By  means  of  these  lines  France  is  tapping  the  chief  sources  of  com 
mercial  prosperity :  North  America,  the  West  Indies  and  Central  Ameri 
ca,  Africa,  and  Farther  Asia. 

There  are  besides  the  great  lines  indicated  others  which  are  also  ex 
tending  rapidly.  From  Hamburg  and  Bremen  there  are  finely-appointed 
transatlantic  lines,  which  receive  aid  in  heavy  charges  for  carrying  mail 
matter  from  Great  Britain  and  the  United  States,  besides  direct  aid  from 
the  North  German  government.  Austria  and  Italy  both  have  lines  sail 
ing  from  Trieste  and  Vienna,  and  carrying  the  mails  for  Mediterranean 
ports.  One  or  both  these  lines  are  pushing  toward  India  and  China. 
Holland  has  a  regular  line  to  and  from  her  East  Indian  colonies, 
and  Spain  one  also  to  the  Phillipine  Islands.  All  these  govern 
ments  see  the  advantages  derived  from  development  of  the  "through 
route"  steamship  system.  Even  Japan,  just  waking  up  to  the  influences 
of  Western  material  progress,  is  encouraging  the  formation  of  a  mercan 
tile  steam  marine,  and  owns  and  employs  in  her  own  waters,  and  in 
trade  with  China,  twenty  first-class  steamers,  paying  liberally  for  the 
transportation  of  the  mails  between  her  own  ports  and  islands. 

In  striking  contrast  with  the  activity  displayed  by  foreign  nations,  is 
the  want  of  it  manifested  by  our  own.  During  the  year  ending  June  30, 
1869,  there  was  paid  by  the  United  States,  for  ocean  mail  service, 
$1,101,674,  of  which  amount  $336,163  was  paid  to  foreign  companies. 

We  have  but  two  lines  of  mail  steamers  running  on  the  Atlantic. 
One,  monthly,  runs  to  Eio  de  Janeiro  from  New  York,  stopping  at 
St.  Thomas  and  Pernainbuco,  the  other,  Pacific  Mail,  from  New  York  to 
Aspinwall,  making  weekly  trips.  On  the  Pacific  side  we  have  from 
Panama,  one  line  to  San  Francisco,  and  from  there  to  Yokohama,  and 
Shanghai.  From  the  same  port  there  is  a  semi-monthly  line  to  Hono 
lulu,  Sandwich  Islands,  one  to  Vancouver's  Island,  carrying  the  mails 
to  Oregon,  British  Columbia,  and  the  Puget  Sound  country,  and  one, 
semi-monthly,  to  Mazatlan,  Mexico.  In  all  not  more  than  thirty  steam 
ships  are  employed  in  this  service,  of  which  the  Pacific  Mail  have 
fourteen.  The  British  Peninsula  and  Oriental  Company  alone  employ 
forty-nine  large  vessels,  forty-six  of  which  are  mail  carriers  for  the  East 
and  Australia. 

Thus  it  appears  that  our  shipping  has  declined  absolutely  and  rela 
tively  with  that  of  other  nations  j  that  not  only  the  carrying  trade  be 
tween  foreign  nations,  but  between  our  own  and  foreign  countries  5  the 
business  furnished  by  our  exports  and  imports  is  being  transferred  to 
foreign  bottoms;  and  last,  and  most  important  of  all  to  our  prestige  as 
a  maritime  nation  and  our  influence  in  the  affairs  of  the  world,  that  we 
have  allowed  other  nations  to  possess  themselves  of  the  most  important 
lines  of  steam  navigation  connecting  distant  parts  of  the  globe. 

In  consequence  of  this  decline  of  our  shipping  the  business  of  ship- 


NAVIGATION    INTERESTS.  Et 

building  in  the  United  States  is  at  the  present  time  at  a  complete  stand 
still.  The  yards  are  empty,  the  workmen  out  of  employment,  and  what 
capital  has  survived  the  wreck  of  disaster  is  either  idle  or  turned  to  other 
channels. 

CAUSES  OF  DECLINE, 

It  has  been  urged  by  some  that  this  depression  of  our  navigation 
interests  is  the  result  of  general  causes,  such  as  an  over-production  of 
tonnage  and  a  depression  in  the  business  of  the  world.  - 

But  such  causes,  if  existing,  would  be  temporary  in  their  operation. 
If  the  shipping  of  the  world  were  temporarily  in  excess  of  the  business 
of  the  world,  the  equilibrium  would  soon  be  restored  by  the  natural  de 
crease  of  ships  and  the  ever  advancing  increase  of  commercial  business. 
The  period  of  prosperity  would,  as  it  always  has,  speedily  follow  that  ot 
depression.  The  facts  stated,  however,  show  a  decline  of  our  navigation 
interests  running  through  a  decade — a  period  too  long  to  be  affected  by 
a  mere  depression  of  business  or  any  over-production  of  tonnage. 

Moreover,  the  decline  has  been  wholly  in  the  shipping  of  the  United 
States.  While  that  of  other  nations  has  been  depressed  from  the  causes 
alluded  to,  there  has  not  only  been  no  absolute  decline,  but,  as  has  been 
shown,  a  constant  increase  in  tonnage  and  in  the  efficiency  of  their  ves 
sels.  In  18G8,  there  were  built  on  the  Clyde  alone  197  vessels,  of  169,571 
tons,  more  than  one-half  of  which  were  steamers.  The  total  of  tonnage 
built  and  registered  in  the  United  Kingdom  in  1868  was  316,197  tons — 
a  larger  amount  than  was  built  in  any  one  year  prior  to  1863. 

It  is  obvious  from  the  foregoing  that  the  causes  operating  to  produce 
the  present  condition  of  the  navigation  interest  are  special — such  as 
affect  American  tonnage  only — and,  as  your  committee  believe,  may  be 
readily  ascertained. 

The  steady  increase  of  our  shipping  engaged  in  the  foreign  trade  up 
to  the  commencement  of  the  rebellion,  and  the  sudden  and  rapid  de 
cline  from  that  point,  leads  directly  to  the  conclusion  that  its  decadence 
is  attributable  mainly,  if  not  solely,  to  incidents  of  the  war.  According 
to  the  best  available  data,  919,466  tons  of  American  shipping  dis 
appeared  from  our  lists  during  the  rebellion.  Of  this  amount,  110,163 
tons  were  destroyed  by  anglo-confederate  pirates,  while  803,303  tons 
were  either  sold  to  foreigners  or  passed  nominally  into  their  hands  and 
obtained  the  protection  of  their  flags.  Here  was  an  actual  loss  to  the 
private  owners  of  less  than  five  per  cent.,  and  a  loss  to  the  nation  of 
about  thirty-seven  per  cent,  of  the  total  of  American  tonnage  engaged  in 
the  foreign  carrying  trade.  The  loss  of  this  amount  of  tonnage  would  not 
of  itself  have  produced  such  disastrous  results  as  wo  have  seen  had 
not  the  value  of  what  remained  been  virtually  destroyed  by  the  peril  in 
which  it  was  placed  from  English  piratical  vessels  sailing  under  the 
confederate  flag.  The  risk  of  sailing  under  the  American  flag  was  so 


X  NAVIGATION   INTERESTS. 

great  as  to  divert  a  large  share  of  the  carrying  trade  into  foreign 
bottoms,  principally  those  of  Great  Britain. 

That  changes  which  have  occurred  in  naval  architecture  and  in  the 
materials  of  which  ships  are  now  being  constructed  operated  anterior 
to  the  rebellion,  and  tended  to  produce  a  revolution  in  the  shipping  of 
the  world,  is  undoubtedly  true.  Iron,  as  a  building  material  for  ships, 
was  fast  superseding  wood,  and  screw  steamers  were,  as  we  have  said, 
crowding  out  sail  vessels  on  all  ocean  routes  where  the  carrying  of  pas 
sengers  and  mails  could  be  combined  with  the  general  freighting  busi 
ness.  But  it  by  no  means  follows  that  this  revolution  in  the  character 
of  the  mercantile  marine  of  the  world  would,  if  peace  had  continued,  have 
prevented  us  from  maintaining  with  foreign  nations  our  relative  posi 
tion  as  a  great  maritime  power.  Our  people,  with  their  sagacity, 
enterprise,  and  aptitude  for  mercantile  and  mechanical  pursuits,  would 
doubtless  have  perceived  and  availed  themselves  of  the  advantages 
resulting  from  this  progress  in  nautical  mechanics. 

Having  invented  the  steamship  and  first  navigated  the  ocean  with 
this  class  of  vessels,  and  taken  the  lead  of  all  nations  in  the  science  of 
naval  architecture,  we  should,  it  may  be  safe  to  assume,  have  held  our 
way  against  the  world  in  competing  for  supremacy  on  the  ocean,  had 
not  our  attention  been  diverted  from  the  pursuits  of  peace  to  the  pre 
servation  of  our  national  existence. 

The  war  not  only  deprived  us  of  the  advantages  resulting  from  this 
change  in  the  character  of  commercial  vessels  and  the  currents  of  trade 
affected  thereby,  but  gave  an  impetus  to  all  business  connected  with 
ocean  navigation,  in  the  hands  of  our  great  commercial  rival,  and  an 
advantage  over  us,  that  but  for  the  war  she  would  not  have  possessed. 
The  business  thus  diverted  into  new  channels  could  not  be  immedi 
ately  regained  by  American  vessels  even  under  the  most  favorable  cir 
cumstances.  But  the  disastrous  effects  of  the  war  did  not  cease  with 
the  return  of  peace.  They  were  rather  aggravated  by  the  burdens  of 
taxation  which  the  war  had  left  imposed  upon  all  the  industries  of  the 
country,  but  which  operated  with  peculiar  hardship  upon  this  particular 
interest,  inasmuch  as  it  is  subjected  to  the  unrestricted  competition  of 
untaxed  foreign  rivals,  and  this  competition  must  be  met  not  only  at 
home  in  our  own  ports,  but  in  all  parts  of  the  world. 

In  a  contest  so  unequal  there  can  be  but  one  result,  and  that  is  the 
total  loss  of  our  foreign  carrying  trade  and  the  destruction  of  our  mer 
chant  marine.  Under  such  conditions  as  these  it  is  as  impossible  to  re 
vive  our  shipping  interests,  unaided  by  the  government,  as  it  would  be 
to  build  up  our  manufacturing  interests  by  imposing  a  heavy  tax  upon 
all  raw  materials,  and  at  the  same  time  admitting  all  manufactured  ar 
ticles  free  of  duty. 

REMEDIES. 

The  fact  that  our  commerce  is  rapidly  disappearing  from  the  ocean 
has  been  mathematically  demonstrated.  The  causes  which  have  brought 


NAVIGATION   INTERESTS.  XI 

it  to  this  condition  can  be  traced  with  considerable  certainty,  but  the 
remedy  for  the  evil,  the  means  best  calculated  to  restore  it,  are  more 
difficult  to  discover  and  apply. 

The  committee,  in  endeavoring  to  find  the  best  method  of  remedying 
the  evil,  have  considered  the  following  proposed  plans  of  legislation  in 
relation  thereto,  which  have  been  urged  upon  its  attention  and  re 
ceived  its  careful  consideration : 

1.  The  readmission  of  the  vessels  which  sought  the  protection  of  a 
foreign  flag  during  the  war  to  American  registry. 

2.  The  modification  of  our  navigation  laws  so  as  to  admit  foreign- 
built  vessels  to  American  registry,  either  free  of  duty  or  on  payment  of 
a  moderate  duty  on  the  tonnage  of  such  vessels. 

3.  The  allowance  of  a  drawback  on  imported  material  which  is  used 
in  the  construction  of  vessels,  or  an  equivalent  to  the  drawback  where 
American  materials  are  used. 

4.  Permission  to  withdraw  from   bond  stores  to   be  consumed   by 
vessels  on  voyages  to  foreign  ports. 

5.  Exemptions  of  tonnage  from  all  taxes  other  than  by  the  federal 
government.    And 

6.  The  granting  of  such  government  aid,  by  way  of  postage  on  mails 
and  by  subsidies,  as  will  insure  the  establishment  of  lines  of  Amirican 
ocean  steamers  to  the  principal  foreign  ports  of  the  world,  thereby 
enabling  our  citizens  to  participate  in  the  profits  of  the  trade  created 
by  such  lines. 

REGISTRATION  OF  FOREIGN-BUILT  SHIPS. 

Your  committee  are  of  opinion  that  the  readmission  to  American 
registry  of  vessels  placed  under  foreign  flags  during  the  rebellion  is 
against  sound  public  policy.  To  allow  citizens  to  avail  themselves  of  all 
the  advantages  conferred  by  our  government  during  peace,  and  escape 
all  the  risks  of  supporting  it  during  war,  by  placing  their  property 
at  such  times  under  the  protection  of  a  foreign  government,  would  be  a 
dangerous  precedent  to  establish.  Most  of  the  vessels  which  changed 
their  nationality  were  placed  under  the  flag  of  a  nation  that,  under  the 
guise  of  neutrality,  was  making  war  upon  our  commerce  for  the  benefit 
of  its  own.  They  identified  their  interest  with  those  of  our  enemy,  and 
obtained  all  the  advantages  resulting  from  such  connection ;  to  readmit 
them  now  to  the  same  privileges  accorded  to  vessels  which  adhered  to 
the  flag  and  fortunes  of  the  country  through  all  the  perils  and  under 
all  the  disadvantages  incident  to  the  war,  would  be  to  encourage  desertion 
in  times  when  the  country  most  needed  the  aid  of  its  citizens. 

The  argument  in  favor  of  the  policy  of  admitting  foreign-built  vessels 
to  American  registry  is  based  upon  the  assumption  that  the  change 
which  has  taken  place  in  the  character  of  commercial  vessels  from  wood 
to  iron,  and  from  sail  to  steam  vessels,  has  given  to  foreign  nations,  par- 


XH  NAVIGATION    INTERESTS. 

ticularly  to  Great  Britain,  such  advantages  in  regard  to  the  cheap  con 
struction  of  this  latter  class  of  vessels,  as  to  make  it  impossible  for  us  to 
compete  with  her ;  and  that  we  are  reduced  to  the  alternative  of  either 
purchasing  our  ships  of  her  or  of  surrendering  to  her  the  carrying  trade. 
It  is  further  urged  that  this  trade  contributes  so  greatly  to  the  wealth 
of  a  nation  that  we  should  secure  it,  by,  purchasing  and  sailing  foreign- 
built  ships ;  to  which  end  it  is  necessary  that  all  restrictions  to  the 
purchase  of  such  ships  should  be  removed  from  our  statutes. 

The  opposite  policy  of  allowing  only  American-built  vessels  the  privi 
lege  of  the  American  flag  and  register  was  adopted  at  the  formation  of 
the  government,  and  has  been  uniformly  adhered  to  since,  modified  only 
by  the  act  of  December  23, 1852,  which  permits  foreign  vessels  wrecked 
in  the  waters  of  the  United  States,  and  repaired  in  our  ports,  the  repairs 
amounting  to  two-thirds  of  the  value,  to  take  out  an  American  register. 
The  best  proof  of  the  wisdom  of  this  policy  is  the  rapid  and  uninterrupted 
progress  which  we  attained  as  a  commercial  nation  under  its  operations. 
Great  Britain  became  the  first  maritime  nation  of  the  world  under  a  like 
policy,  which  she  never  relaxed  until  her  merchant  marine  was  strength,, 
ened  beyond  danger. 

In  order  to  understand  and  appreciate  the  practical  operation  of  the 
policy  of  admitting  foreign-built  ships  to  American  registry,  and  its 
effects  upon  the  national  wealth,  we  must  consider  somewhat  in  detail 
the  manner  in  which  the  shipping  of  a  country — and  particularly  that  of 
our  own — is  built  up  and  maintained.  The  shipping  of  the  United  States 
has  never  been  built,  and  only  to  a  limited  extent  has  it  been  owned,  by 
capitalists,  but  by  men  of  moderate  means,  the  lumberman,  the  mechanic, 
the  ship-master,  and  the  merchant,  each  having  an  interest  in  the  pro 
duction,  the  sailing,  and  the  freight  of  the  ship,  independent  of  the 
profits  to  be  directly  derived  from  its  earnings. 

The  lumberman  to  make  a  market  for  his  timber,  the  mechanic  to  ob 
tain  employment  in  constructing,  the  ship-chandler  for  sale  of  his  goods 
in  furnishing,  the  ship-master  to  obtain  business  in  his  profession,  and 
the  merchant  to  secure  the  commissions  resulting  from  the  management 
of  the  business,  all  unite  in  building,  owning,  and  sailing  vessels.  To 
use  the  expression  of  Mr.  Loring,  a  practical  ship-carpenter,  largely  in 
terested  in  building  and  owning  vessels,  who  testified  before  the  com 
mittee  at  Portland:  "The  whole  parish  are  often  interested  in  building 
and  owning  vessels." 

This  associated  effort  not  only  supplies  the  capital  but  the  practical 
knowledge  and  experience  to  construct  and  manage  this  description  of 
property  successfully,  and  also  furnishes  an  incentive  to  produce  it  far 
greater  than  that  of  mere  interest  on  investment  of  capital  alone. 

By  purchasing  our  ships  in  foreign  countries  we  transfer  not  only  all 
the  labor  necessary  to  construct  them,  from  the  taking  of  the  timber 
from  the  forests,  and  the  ore  from  the  mines,  to  the  launching  of  the 
ship,  but  also  all  the  business  of  furnishing  the  outfits  and  supplies  for 


NAVIGATION    INTERESTS.  XIII 

the  voyage.  It  is  estimated  that  more  than  sixty  per  cent,  of  the  ton 
nage  of  the  United  States  engaged  in  the  foreign  carrying  trade  is  en 
gaged  in  freighting  between  the  ports  of  foreign  countries,  and  many  of 
these  vessels  never  return  after  sailing  from  our  ports.  What  advan 
tage  would  it  be  to  our  country  to  have  the  real  or  nominal  ownership 
of  this  class  of  vessels,  built,  fitted,  manned,  and  provisioned  for  their 
voyage  in  a  foreign  port,  touching  only  at  the  ports  of  the  United  States 
to  obtain  an  American  register,  and  then  pursuing  their  voyage,  per 
haps  never  to  return  1  If  such  vessels  were  really  wholly  owned  in  the 
United  States  it  could  be  of  no  advantage  to  us. 

It  would  not  be  tonnage,  the  production  of  which  would  aid  in  furn 
ishing  profitable  employment  to  American  mechanics  and  American 
agriculturalists  and  help  to  increase  our  national  wealth.  It  would  not 
multiply  comfortable  cottages  nor  create  thriving  villages  of  industrious 
workmen  around  busy  American  ship-yards  in  time  of  peace.  It  would 
be  simply  the  investment  of  American  capital  in  property  out  of  the 
country,  the  dividend  from  which  only  would  be  returned  to  us.  It 
would  give  no  strength  in  time  of  war.  Representing  capital  alone,  it 
would  partake  of  the  timidity  of  capital,  and  whenever  danger  threat 
ened,  seek  safety  under  a  neutral  or  hostile  flag. 

Still  further,  we  cannot  build  up  a  truly  American  merchant  marine 
in  a  foreign  country,  for  the  reason  that  the  countries  in  which  we  build 
will  have  every  advantage  over  us  in  competing  for  the  carrying  trade 
which  is  to  sustain  such  a  marine.  First,  in  the  profits  of  the  business 
of  building  and  fitting  out  the  vessels.  Second,  in  the  command  of 
cheap  capital.  Third,  in  combining  the  building,  owning,  and  manging 
interests,  which  can  only  be  done  in  the  country  where  the  shipping  is 
built.  And  fourth,  in  the  prestige  such  countries  would  obtain  by  furn 
ishing  the  vessels  which  Americans  would  own,  and  also  those  which 
were  to  compete  for  the  business  with  American-owned  vessels.  Fur 
thermore,  it  is  not  probable  that  American  capital  would  be  sent  to 
Europe  to  build  ships  with  which  to  compete  on  equal  terms  for  busi 
ness  with  the  ships  of  those  who  build  for  them,  unless  these  foreign- 
built  vessels  were  allowed  to  participate  in  our  coasting  trade — a  change 
in  our  policy  which  would  not  only  entirely  destroy  every  branch  of 
mechanical  industry  in  the  United  States  dependent  upon  ship-building, 
but  would  ruin  the  present  owners  of  coasting  vessels.  It  would  be  ad 
mitting  to  the  enjoyment  of  American  business  foreigners  who  pay  no 
taxes  to  the  American  government,  and  who,  by  virtue  of  that  exemp 
tion,  would  be  enabled  to  drive  American  tax-payers  out  of  employment. 

The  policy  of  admitting  foreign-built  ships  to  American  register,  on 
payment  of  a  duty,  has  also  been  urged.  The  committee  cannot  recom 
mend  such  legislation,  for  whatever  duty  might  be  so  imposed,  would 
operate  only  to  the  advantage  of  the  foreign  ship-owner,  with  whom  the 
American  purchaser  and  owner  of  such  foreign-built  ships  would  have 
to  compete.  If  we  were  to  admit  foreign-built  ships  to  American  regis- 


XIV  NAVIGATION    INTERESTS. 

tor  at  all,  it  would  be  with  the  view  of  enabling  our  ship-owners  to 
supply  themselves  with  vessels  at  a  rate  as  low  as  that  paid  by  foreign 
competitors.  An  American  ship-owner  must  in  such  case  be  able  to 
purchase  as  cheap  as  the  foreigner,  or  he  must  obtain  better  ships ; 
otherwise  he  is  deprived  of  that  equality  of  ability  to  compete,  which 
is  an  essential  quality  of  the  success  desired  by  those  who  engage  in 
the  carrying  trade  of  the  world.  The  statement  is  in  itself  a  sufficient 
answer  to  the  proposition. 

But  there  are  other  objections  more  weighty  than  those  referred  to, 
that  should  prevent  the  adoption  of  either  policy.  They  would  deprive 
us  of  the  mechanical  skill  requisite  to  build  our  navy  in  time  of  war,  or 
oblige  us  to  maintain  it  at  great  expense  connected  with  the  govern 
ment  works  in  time  of  peace,  and  would  also  compel  the  maintenance 
of  a  large  naval  force  entirely  useless  as  a  peace  establishment,  but 
necessary  to  preserve  and  defend  the  national  honor  and  interests  in  case 
they  were  menaced.  It  would  be  humiliating,  indeed,  to  every  American 
to  see  Great  Britain  employed  and  paid  by  us  to  build  shipping  to  replace 
that  which  she  so  effectively  aided  to  destroy  during  the  rebellion.  If  we 
adopt  a  policy  that  will  admit  of  such  results,  that  nation  could  well 
afford  to  pay  our  most  extravagant  demands  upon  her  for  damages  in- 
fl^cted  by  the  cruisers  which  from  her  ports  made  war  upon  our  com 
merce  during  the  rebellion. 

Every  consideration,  whether  of  interest  or  of  national  pride,  impels 
us  to  build  upon  our  own  soil  the  ships  which  are  to  bear  the  flag  of  our 
country  to  all  quarters  of  the  globe. 

This  result  can  only  be  accomplished  by  adopting  a  policy  as  liberal 
and  enlightened  as  that  of  the  nations  with  which  we  are  to  compete  for 
the  carrying  trade  of  the  world,  which  nations  are  now  in  possession  of 
the  field. 

Those  nations  admit  all  the  material  entering  into  the  construction  of 
vessels  free  of  duty ;  they  also  allow  the  withdrawal  from  bond  of  all 
stores  used  on  the  voyage  of  a  ship  sailing  to  a  foreign  port,  the  same 
as  though  such  stores  were  exported ;  and  they  pay  liberally  to  steamers 
for  carrying  the  mails,  and  thus  establish  lines  to  all  parts  of  the  world. 

SUBSIDIES  TO    STEAMSHIPS. 

The  subsidies  paid  by  Great  Britain  and  France  to  establish  their 
steamship  lines,  and  for  the  promotion  of  their  general  shipping  interests, 
are  returned  to  them  many  fold  by  the  nations  that  pursue  a  more  narrow 
and  short-sighted  policy.  It  is  the  United  States  that  supports  the  foreign 
steamships  which  run  to  and  from  her  ports,  by  the  mail,  passenger,  and 
freight  money  which  she  pays  to  them,  rather  than  to  establish  lines  of 
her  own.  Worse  still,  while  we  carefully  scrutinize  every  appropriation 
for  our  own  navy,  we  pay  annually  more  to  support  this  most  efficient 
arm  of  the  navy  of  Great  Britain  than  is  asked  for  the  support  of  our 
own. 


NAVIGATION   INTERESTS.  XV 

The  testimony  taken  by  the  committee  is  nearly  unanimous  that  by 
offering  to  our  citizens  the  same  encouragement  and  protection  as  is 
afforded  by  other  commercial  nations  to  their  citizens,  our  shipping  can  be 
built  and  lines  of  ocean  steamers  established  as  fast  as  the  requirements 
of  business  demand,  and  that  there  would  be  a  present  demand  for  ships 
if  they  could  be  cheaply  supplied. 

That  although  the  cost  of  iron  and  some  other  materials  would  be 
higher  by  the  amount  paid  for  freight,  and  the  wages  of  labor  are  also 
higher  with  us  than  in  Europe,  yet  we  should  have  an  advantage  in  the 
cost  of  timber,  a  la,rge  amount  of  which  is  used,  even  in  the  construction 
of  iron  vessels ;  and  that  the  higher  rates  paid  for  American  labor 
would  be  more  than  counterbalanced  by  its  greater  efficiency  and  skill. 
This  leads  us  to  the  difficult  question,  as  to  the  methods  in  which  gov 
ernment  shall  endeavor  to  extend  its  aid  to  our  decaying  navigation 
interests.  Your  committee,  after  the  most  careful  deliberation,  impressed 
with  the  great  importance  of  restoring  our  commercial  marine,  not 
only  as  a  means  of  increasing  the  national  wealth  in  time  of  peace,  but 
also  as  one  of  the  most  efficient  agencies  for  national  defence  in  time 
of  war,  respectfully  recommend  the  following  measures  as  calculated  to 
promote  the  desired  object : 

First.  The  remission  of  the  duties  imposed  upon  the  raw  material 
entering  into  the  construction  of  vessels  and  steamers,  limiting  the 
amount  to  the  minimum  of  duties  per  ton  collected  on  the  material 
required  for  certain  classes  of  vessels ;  and  where  American  iron  is  used 
in  the  construction  of  iron  vessels,  an  amount  per  ton  equivalent  to  the 
duties  on  a  like  amount  of  imported  raw  materials,  limiting  the  amount 
to  be  paid. 

Second.  That  all  stores  to  be  used  by  vessels  sailing  to  foreign  ports 
may  be  taken  in  bond  free  of  duty  j  and 

Third.  Further  to  encourage  investment  in  shipping,  and  to  extend 
the  aid  to  ships  already  built,  and  which  have  been  sailed  during  and 
since  the  rebellion  at  great  disadvantage,  allowing  to  all  sail  vessels 
and  to  all  steamers  running  to  the  British  North  American  Provinces, 
one  dollar  and  fifty  cents  per  ton ;  on  steamers  to  European  ports,  four 
dollars  per  ton ;  and  on  all  other  steamers  running  to  foreign  ports, 
three  dollars  per  ton. 

In  view  of  the  fact  that  the  tax  upon  tonnage  cannot  be  removed 
without  relieving  the  vessels  of  all  foreign  nations  of  the  same,  while  no 
such  exemption  is  extended  to  American  vessels  in  foreign  ports,  and  in 
view  of  the  further  fact  that  the  shipping  interest  of  the  country  is  to 
receive  some  relief  by  the  passage  of  the  proposed  measures,  the  com 
mittee  recommend  only  the  removal  of  all  tonnage,  harbor,  pilotage, 
and  other  like  taxes  imposed  upon  shipping  by  State  and  municipal 
authority,  (most  of  which  taxes  have  been  declared  by  the  Supreme  Court 
unconstitutional,)  and  the  readjustment  of  the  present  tax  upon  tonnage, 
so  that  it  will  fall  more  equitably  upon  the  different  classes  of  vessels 


XVI  NAVIGATION   INTERESTS. 

affected  thereby.  The  amount  which  will  be  received  from  this  source 
is  estimated  by  the  committee  to  be  more  than  three  million  dollars  per 
annum,  and  will  to  that  extent  contribute  to  the  relief  which  is  proposed 
to  be  granted  in  aid  of  the  shipping  interest  of  the  United  States.  For 
the  purpose  of  carrying  out  the  foregoing  recommendations,  your  com 
mittee  report  herewith  two  bills  for  consideration. 

In  reporting  the  bills  referred  to,  your  committee  are  hopeful  that  in 
case  of  their  adoption  the  shipping  interests  of  the  country  may  derive 
very  considerable  relief.  That  they  will  fully  meet  the  expectations  oi 
the  large  class  of  our  citizens  connected  with  this  interest  they  do  not 
expect.  Nor  have  they  full  confidence  that  the  result  will  be  the  speedy 
restoration  of  our  lost  commerce. 

Time  will  be  required  to  organize  the  capital  and  labor  necessary  to 
embark  extensively  in  the  business  of  constructing  iron  sail  and  steam 
ships  ;  and  still  greater  inducements  must  be  offered  to  insure  the  estab 
lishment  of  lines  of  American  ocean  steamers  which  will  relieve  us  from 
our  present  humiliating  and  disgraceful  dependency  upon  foreigners. 

It  is  but  a  few  days  since  that  our  government  was  reminded  by  the 
managers  of  the  English  lines  of  steamers,  the  Inman  and  Cunard,  of 
the  disgraceful  fact,  that  not  a  single  merchant  steamer  bearing  the 
American  flag  now  crossed  the  Atlantic,  and  that  we  were  entirely  de 
pendent  upon  them  for  the  transportation  of  our  mails,  which  they  carry 
under  temporary  arrangements,  to  be  terminated  at  their  pleasure. 
While  our  government  has  with  lavish  liberality,  in  subsidies  of  lands 
and  money,  aided  in  extending  railways  through  the  West,  and  have 
appropriated  large  sums  for  .the  improvement  of  interior  water  commu 
nications,  our  ocean  navigation  has  been  left  without  either  aid  or  pro 
tection.  The  prosperity  of  the  country  in  time  of  peace,  as  well  as  its 
security  in  time  of  war,  is  largely  dependent  upon  an  efficient  merchant 
marine,  and  it  is  worthy  of  the  consideration  of  Congress  whether  by 
granting  such  aid  as  will  secure  the  building  up  of  a  large  part  of  this 
marine,  in  swift  ocean  steamers,  readily  convertible  into  cruisers  in  time 
of  war,  we  are  not  providing  a  most  economical  and  efficient  means  of 
naval  defense.  It  was  stated  by  Admiral  Porter,  before  this  committee, 
that  with  a  few  such  ships  converted  into  war  vessels  at  the  breaking 
out  of  the  rebellion,  such  a  blockade  of  the  southern  coast  could  have 
been  established  as  would  have  prevented  the  rebels  from  sending  out 
a  pound  of  cotton  or  obtaining  supplies  or  munitions  of  war,  and  the 
rebellion  would  have  been  strangled  almost  at  its  birth.  Who  can  com 
pute  the  loss  in  lives  and  in  money  consequent  upon  the  want  of  a  few 
such  ships? 

It  is  evident  that  our  future  wars  with  any  of  the  great  powers  must 
be  upon  the  ocean,  and  with  an  enemy  that  must  cross  the  ocean  to  attack 
us,  and  whose  vulnerable  point  to  assail  is  the  population  and  wealth 
which  he  has  scattered  on  every  sea. 

Great  Britain  has,  as  we  have  seen,  adopted  the  policy  of  subsidizing 


NAVIGATION    INTERESTS.  XVII 

her  lines  of  ocean  steamers,  and  the  result  is  that  she  has  doubled  the 
efficiency  of  her  navy,  and  at  the  same  time  added  immensely  to  her 
national  wealth.  These  subsidized  ships  are  subject  at  all  times  to  the 
demands  of  the  government.  Our  government  has  no  such  source  to 
draw  from,  and  must  consequently  depend  entirely  upon  a  navy  sup 
ported  in  peace,  to  be  available  in  war. 

It  would  even  be  a  matter  of  economy  if  our  government  should 
build  vessels  adapted  to  the  uses  of  commerce  in  time  of  peace,  and 
readily  convertible  into  fighting  ships  in  time  of  war,  giving  the  free 
use  of  such  ships  in  time  of  peace  to  merchants  who  would  take  care  ot 
and  use  them  until  required  for  the  national  defense.  Under  such  cir 
cumstances  the  government  would  be  relieved  of  the  cost  of  taking  care 
of  the  ships  when  not  required  for  the  public  service,  and  the  national 
wealth  would  be  increased  by  their  use  for  mercantile  purposes.  As 
the  government  can  have  the  control  of  such  vessels  when  needed,  by 
paying  only  a  small  percentage  of  their  cost,  is  it  not  clearly  a  matter 
of  economy  and  sound  public  policy  to  legislate  with  a  view  to  such  re 
sults? 

The  policy  here  suggested,  in  regard  to  extending  government  aid 
to  establish  lines  of  steamers,  should  be  entered  upon  only  after  such 
careful  and  thorough  consideration  of  the  whole  subject  as  will  lead  to 
the  adoption  of  a  comprehensive  system  that  will  be  permanent  in  its 
character  and  certain  to  secure  the  desired  results. 

Your  committee  have  only  had  time  to  consider  the  general  question 
relating  to  navigation  interests,  and  leave  this  particular  branch  of  the 
subject  to  be  reported  upon  after  considering  fully  the  various  bills  re 
lating  thereto  referred  to  them  by  the  House. 

OUR  RIVER  AND  RAILWAY  NAVIGATION. 

The  vast  navigable  rivers  and  extensive  lines  of  railway  of  our  coun 
try  are  so  intimately  connected  with  the  subjects  of  ocean  steam  navi 
gation  that  your  committee  cannot  refrain  from  alluding  to  them  in  con 
cluding  this  report. 

The  continental  position  and  geographical  features  of  this  republic, 
lying  in  the  direct  route  between  Europe  and  Asia,  washed  on  either 
shore  by  the  two  great  oceans  of  the  world,  and  interlaced  with  a  vast 
net-work  of  interior  navigable  waters,  affords  in  itself  the  grandest  of 
all  possible  incentives  toward  determining  the  granting  of  such  legiti 
mate  aid  as  may  be  accorded  in  the  effort  to  revive  our  shipping  inter 
ests,  as  well  as  to  achieve  that  supreme  maritime  leadership  to  which 
we  may  reasonably  aspire. 

Oar  natural  advantages  are  still  further  aided  by  the  artificial  means 
which  scientific  and  material  enterprise  has  afforded  through  the  devel 
opment  of  the  railroad  system,  especially  of  those  great  lines  which 
connect  the  Atlantic  and  the  Pacific,  and  which,  with  their  branches, 


XVIII  NAVIGATION   INTERESTS. 

are  to  intersect  the  whole  territory  between  those  oceans.  They  arc 
like  so  many  mighty  rivers,  furnishing  capacity  for  unlimited  transporta 
tion. 

The  mail  route  from  London  to  Eastern  Asia  lies  across  the  American 
continent,  and  passengers  and  valuable  freights  such  as  the  trade  oi 
China  and  Japan  provides  will  pass  over  the  same  lines.  Yokohama, 
the  principal  port  in  Japan,  and  Shanghai  and  Hong  Kong,  in  China, 
are  all  nearer  in  time  and  distance  to  London  via  New  York  and  San 
Francisco  than  via  the  newly  opened  route  of  the  Suez  Canal. 

The  following  comparative  distances  between  London  and  New  York 
and  some  of  the  principal  ports  of  Eastern  Asia  illustrate  the  advan 
tages  of  our  position : 

London  to  Yokohama  (Japan)  via  Suez  Canal 11,509 

London  to  Yokohama  (Japan)  via  New  York  and  San  Francisco  10,000 
New  York  to  Yokohama  (Japan)  via  Pacific  railroad  and  San 

Francisco 7,520 

San  Francisco  to  Yokohama  (Japan)  per  steamer. 4,520 

London  to  Shanghai  via  Suez  Canal 10,469 

New  York  to  Shanghai  via  Pacific  railroad  and  San  Francisco. .  8,555 

San  Francisco  to  Shanghai  per  steamer 5,555 

Chicago  to  Yokohama 6,900 

St.  Louis  about  same  distance  as  Chicago. 

Nothing  in  the  future  is  more  certain  than  that  the  foreign  importa 
tions  of  the  West  are  to  be  made  directly  to  her  chief  commercial 
cities,  and  distributed  therefrom  as  they  now  are  from  the  ports 
of  the  seaboard.  The  railways  which  are  to  supply  them  in  part 
are  but  in  their  infancy,  and  by  means  of  improvements  yet  to  be 
introduced  may  ere  long  be  able  to  compete  successfully  with  steam 
transportation  by  water.  Through  such  improvements,  the  routes  across 
our  continent,  already  the  most  direct,  may  become  the  cheapest  routes 
from  London  to  China  and  Japan.  Between  the  western  termini  of  these 
routes  and  the  lauds  that  are  washed  by  the  Pacific  and  Indian  Oceans, 
nature  has  provided  free  of  cost  a  great  highway,  which  we  have  only 
to  occupy  with  vehicles  of  transportation.  No  mountain  barriers  are  to 
be  scaled  or  leveled  to  reach  them. 

Those  Asiatic  countries  are  teeming  with  a  busy,  industrious  popula 
tion,  skilled  in  the  mechanic  arts,  and  adepts  in  the  science  of  agricul 
ture.  Abounding  in  wealth,  with  extensive  internal,  and  little  external 
commerce,  their  trade  has  been  the  prize  for  which  all  commercial 
nations  have  for  centuries  contended.  The  trade  of  the  more  important 
of  these  countries,  India,  China,  and  Japan,  Great  Britain  now  draws  to 
herself,  and  distributes  again  from  her  stores  to  the  rest  of  the  world. 

The  silver  products  of  the  mines  of  America  make  nearly  the  circuit 
of  the  world  to  reach,  via  Great  Britain,  the  countries  of  the  East, 
while  the  products  of  those  countries  come  back  to  America  by  the  same 
circuitous  route. 


NAVIGATION   INTERESTS.  XIX 

These  far  Eastern  countries  are  at  our  very  doors ;  their  relations  with 
us  more  friendly  than  with  any  other  nation  j  their  trade  is  at  our  com 
mand,  if  wo  will  but  stretch  forth  our  hand  and  take  it. 

The  advantages  to  result  from  the  revival  of  our  commerce  and  navi 
gation,  and  especially  from  our  obtaining  possession  of  the  Pacific  trade, 
are  confined  to  no  one  section  of  the  country.  With  the  Sandwich 
Islands  in  our  possession,  and  by  the  adoption  of  a  wise  and  liberal 
commercial  policy,  we  can  control  the  trade  of  Eastern  Asia  and  the 
commerce  of  the  Pacific,  and  pour  their  wealth  directly  into  the  valley 
of  the  Mississippi,  which  is  to  be  the  center  of  population  in  the  future 
of  our  country.  Chicago,  St.  Louis,  and  other  cities  of  the  West  are, 
as  we  have  said,  to  become  ports  of  entry,  and  distributors  of  the  pro 
ducts  of  Asia  as  well  as  of  Europe.  Thus,  the  great  West  has  the  same 
interest  in  reviving  and  maintaining  the  ocean  commerce  of  our  country 
under  the  American  flag  that  the  Atlantic  States  have  in  opening  up 
internal  lines  of  commerce,  whether  by  the  building  of  great  lines  of 
railway,  or  by  the  improvement  of  lake  or  river  navigation. 

Shall  we,  after  having  expended  millions  in  opening  this  opportunity 
of  controling  the  commerce  of  the  world  by  uniting  the  two  great  oceans 
that  wash  the  opposite  shores  of  the  continent — after  astonishing  the 
world  by  our  energy  and  wisdom  in  carrying  through  such  a  gigantic 
commercial  enterprise  while  in  an  armed  struggle  for  national  exis 
tence — surprise  it  still  more  by  our  supineness  and  folly  in  neglecting 
to  avail  ourselves  of  the  greater  advantages  which  nature  has  opened  to 
us  without  cost  ? 

JOHN  LYNCH. 

JAS.  BUFFINGTOST. 

CADWALADER  C.  WASHBURK 

GILES  W.'  HOTCHKISS. 

DAN'L  J.  MORRELL. 

HERVEY  C.  CALKIK 

ERASTUS  WELLS. 


Mr.  LYNCH,  from  the  Select  Committee  on  the  Causes  of  the  Reduction 
of  American  Tonnage,  reported  the  following  bill : 

A  BILL  to  revive  the  navigation  and  commercial  interests  of  the  United  States. 

Whereas  the  mercantile  marine  of  the  country  was  nearly  destroyed 
during  the  late  rebellion  in  consequence  of  the  inability  of  the  govern 
ment  to  protect  it  j  and  now,  while  bearing  its  share  of  taxation,  has  no 
such  protection  from  foreign  competition  as  is  afforded  to  other  great 
national  interests  and  industries,  and  is  therefore  steadily  declining ; 
and  whereas  the  restoration  of  our  commercial  marine,  constituting  as 
it  does,  one  of  the  most  efficient  means  of  defense  in  time  of  war,  is  of 


XX  NAVIGATION   INTERESTS. 

great  national  importance  and  essential  to  the  maintenance  of  our  posi 
tion  as  a  first-class  power :  Therefore, 

Be  it  enacted  by  the  Senate  and  House  of  Representatives^  the  United 
States  of  America  in  Congress  assembled,  That  upon  all  imported  lumber, 
timber,  hemp,  Manila,  and  composition  metal,  and  upon  iron  not  ad 
vanced  beyond  plates,  rod  bars  and  bolts,  which  may  be  used  and 
wrought  up  into  the  construction  of  steaia  or  sail  vessels  built  in  the 
United  States,  whether  for  the  hull,  rigging  or  equipment,  or  machinery 
of  such  vessels,  there  shall  bo  allowed  and  paid  by  the  Secretary  of  the 
Treasury,  under  such  regulations  as  he  may  prescribe,  a  drawback 
equal  to  the  duties  which  may  have  been  paid  on  such  material: 
Provided,  That  the  amount  of  such  drawback  shall  not  exceed  on 
wooden  vessels,  eight  dollars  per  ton  j  on  iron  vessels,  twelve  dollars 
per  ton ;  on  vessels  known  as  composite,  that  is,  vessels  composed  of 
iron  frames  and  wooden  planking  and  sheathing,  ten  dollars  per  ton ;  on 
wooden  steamers,  ten  dollars  per  ton ;  on  composite  steamers,  composed 
of  iron  frames  and  wooden  planking,  twelve  dollars  per  ton ;  on  iron 
steamers,  fifteen  dollars  per  ton :  And  provided  further,  That  where 
American  material  is  used  in  the  construction  of  iron  or  composite  ves 
sels  or  steamers,  there  shall  be  allowed  and  paid,  as  aforesaid,  an  amount 
equivalent  to  the  duties  imposed  on  similar  articles  of  foreign  manufac 
ture  when  imported,  the  full  allowance  on  American  and  foreign  mate 
rials  not  to  exceed  the  amounts  per  ton,  on  vessels  of  each  class  re 
spectively,  hereinbefore  specified. 

SEC.  2.  And  be  it  further  enacted,  That  all  ship  stores  and  coal,  to  be 
used  and  consumed  by  any  vessel  on  its  voyage  from  any  port  of  the 
United  States  to  any  foreign  port,  may,  in  such  quantity  and  under  such 
regulations  as  the  Secretary  of  the  Treasury  may  prescribe,  be  taken  in 
whole  packages  in  bond,  and  disposed  of  for  such  purposes,  free  of  im 
port  and  internal  duty  and  tax. 

SEC.  3.  And  be  it  further  enacted.  That  the  owner  of  any  American 
registered  sail  or  steam  vessel  which  shall  be  engaged  for  more  than  six 
mouths  in  the  year  in  the  carrying  trade  between  American  and  foreign 
ports,  or  between  the  ports  of  foreign  countries,  shall,  at  the  end  of  each 
fiscal  year  in  which  such  vessel  has  been  so  engaged,  be  paid  by  the 
collector  of  the  port  where  such  vessel  is  registered,  upon  exhibiting 
satisfactory  evidence,  in  form  to  be  prescribed  by  the  Secretary  of  the 
Treasury,  that  such  vessel  has  been  so  engaged,  upon  every  sail  vessel, 
one  dollar  and  fifty  cents  for  each  registered  ton;  and  upon  every 
steamer  running  to  and  from  the  ports  of  the  North  American  Province, 
one  dollar  and  fifty  cents  for  each  registered  ton;  and  upon  every 
steamer  running  to  and  from  any  European  port,  four  dollars  for  each 
registered  ton ;  and  upon  every  steamer  running  to  and  from  all  other 
foreign  ports,  three  dollars  for  each  registered  ton. 


NAVIGATION   INTERESTS.  XXI 

Mr.  LYNCH,  from  the  Select  Committee  on  the  Causes  of  the  Eecluction 
of  American  Tonnage,  reported  the  following  bill : 

A  BILL  imposing  tonnage  duties,  and  for  other  purposes. 

Be  it  enacted  by  the  Senate  and  House  of  Representatives  of  tlie  United 
States  of  America  in  Congress  assembled,  That  in  lieu  of  all  duties  on 
tonnage  now  imposed  by  law,  a  duty  of  thirty  cents  per  ton  is  hereby 
imposed  on  all  ships,  vessels,  or  steamers  entered  in  the  United  States ; 
but  the  receipts  of  vessels  paying  such  tax  shall  not  be  subject  to  the 
tax  provided  in  section  one  hundred  and  three  of  an  act  approved  June 
thirty,  eighteen  hundred  and  sixty -four,  nor  by  any  act  amendatory 
thereof:  Provided,  That  no  ship,  vessel,  or  steamer  having  a  license  to 
trade  between  different  district  of  the  United  States,  or  to  carry  on  the 
bank,  whale,  or  other  fisheries,  and  no  vessel  or  steamer  to  or  from  any 
port  or  place  in  Mexico,  or  from  any  port  or  place  south  of  Mexico,  down 
to  and  including  Aspinwall  and  Panama,  or  from  any  port  or  place  in 
the  British  Provinces  of  North  America,  or  the  West  India  Islands,  and 
employed  regularly  in  these  trades  and  no  others,  shall  be  required  to 
pay  the  tonnage  tax  contemplated  by  this  act  more  than  once  in  each 
fiscal  year. 

SEC.  2.  And  be  it  further  enacted,  That  no  harbor  dues,  pilotage  fees, 
or  other  taxes  on  imports  levied,  or  pretended  to  be  levied,  on  the  ton 
nage,  merchandise,  trade,  imports,  or  cargoes  of  any  vessel,  by  virtue 
of  the  authority  of  any  State  or  municipal  government,  except  wharfage, 
pierage,  and  dockage,  shall  be  collected ;  and  the  collection  of,  or  at 
tempt  to  collect  the  same,  or  any  portion  thereof,  shall  be  a  penal  offense, 
to  be  punished  as  hereafter  provided. 

SEC.  3.  And  be  it  further  enacted,  That  any  person  who,  by  virtue  of 
any  authority  or  pretended  authority  derived  under  any  State  or  mu 
nicipal  government,  shall  collect  any  such  illegal  tax,  fees,  or  dues,  or 
shall  attempt  to  collect  the  same,  shall,  upon  the  conviction  of  each 
offense,  be  fined  in  a  sum  not  exceeding  one  hundred  dollars  for  each 
offense,  the  amount  of  which  fine  shall  be  paid  into  the  Treasury  of  the 
United  States  to  the  credit  of  the  judiciary  fund,  and  he  shall  further  be 
liable  to  pay  a  sum  not  exceeding  double  the  amount  of  the  illegal  taxes, 
fees,  or  dues  thus  collected,  or  attempted  to  be  collected,  one-half  to  be 
paid  to  the  informer,  and  the  other  to  be  placed  to  the  credit  of  the  ap 
propriation  for  light-houses. 

SEC.  4.  And  be  it  further  enacted,  That  any  captain  or  master  of  a  ves 
sel,  or  any  other  person  being  the  duly  authorized  agent  of  any  vessel, 
line  of  vessels,  or  transportation  company,  who  shall  pay,  with  or  with 
out  protest,  any  such  illegal  taxes,  fees,  or  dues  as  are  prohibited  by 
this  act,  may  recover  the  sum  from  the  person  collecting  the  same  by 
action  in  appropriate  form  in  the  district  court  of  the  United  States  of 
the  district  where  the  collection  was  made,  and  the  courts  of  the  United 
States  shall  have  full  jurisdiction  in  all  cases  arising  under  this  act. 
m— NI 


NAVIGATION    INTEEESTS. 


TESTIMONY  TAKEN  BY  THE  COMMITTEE. 

NEW  YORK,  October  14,  1869. 

The  committee  met  in  a  room  in  the  custom-house. 

Present:  The  chairman,  Messrs.  Buffiuton,  Morrell,  Wells,  Calkin, 
and  Holman. 

The  chairman  stated  the  objects  for  which  the  committee  was  ap 
pointed,  and  said  that  he  had  been  notified  that  committees  had  been 
appointed  by  the  Ship-owners'  and  Ship-builders'  Associations,  of  New 
York,  to  present  the  views  of  those  associations,  and  that  the  com 
mittee  would  now  be  pleased  to  hear  from  the  New  York  associations. 

The  New  York  Ship-owners'  Association  was  represented  by  Messrs. 
Gustavus  A.  Brett,  Edward  Hincken,  Ambrose  Snow,  James  W.  Elwell, 
William  Nelson,  jr.,  and  Allstou  Wilson. 

Mr.  HINCKEN,  as  one  of  the  representatives  of  the  New  York  Ship 
owners'  Association,  stated  that  there  were  one  hundred  and  eighty 
members  on  the  rolls  of  that  association,  and  that  almost  every  man 
owning  a  ship  in  the  city  of  New  York  was  represented  by  the  associa 
tion.  The  matter  before  the  committee  had  been  discussed  by  that 
association,  and  it  believed  that  there  was  but  one  salvation  for  the 
shipping  trade,  and  that  that  consisted  in  Congress  permitting  the  pur 
chase  of  ships  where  they  could  be  bought  cheapest.  He  thought  that, 
with  one  or  two  exceptions,  that  was  the  unanimous  opinion  of  the  ship 
owners  of  New  York.  The  ship-builders  of  Maine  would  present  their 
own  views  of  the  case.  The  ship-owners  saw  no  other  means  of  compet 
ing  with  foreign  nations  for  the  carrying  trade  unless  they  could  buy 
their  ships  in  the  same  market.  The  cost  of  sailing-ships,  after  they 
came  under  the  American  flag,  would  be  greater  than  their  cost  would 
be  to  foreign  ship-owners  ;  but  it  was  believed  that  the  ship-owners  of 
America  had  sufficient  energy,  enterprise,  and  ability  to  overcome  that 
difference,  just  as  the  ship-builders  of  Maine  thought  that  they  could 
overcome  the  difference  in  the  cost  of  labor,  &c.,  if  the  materials  that 
entered  into  the  building  of  their  ships  were  free  of  duty.  The  sh  ip-own- 
ers  of  New  York  were  IbrVuying  their  tools  where  they  could  buy  them 
cheapest,  because  a  ship  was  but  a  tool,  and  it  was  the  only  tool  that 
was  prohibited  from  being  imported.  As  to  the  amount  of  duty  that 
was  to  be  paid  on  imported  ships,  that  would  be  a  question  for  Con 
gress  to  decide.  They  claimed  as  carriers  that  they  ought  to  have  the 
right,  if  the  carrying  trade  of  the  country  was  of  any  advantage,  to 
buy  their  tools  wherever  they  could  buy  them  cheapest.  England  had 
bought  her  ships  here  when  she  could  not  build  them  so  cheaply  her 
self;  but  England  was  now  building  iron  ships,  and  France  and  Ger 
many  and  Belgium  were  buying  their  ships  in  England.  Before  the 
French  had  entered  into  this  commerce  there  were  sixteen  regular 
packets  running  from  New  York,  which  sailed  as  regularly  as  the  day  of 
sailing  came  round,  whether  they  were  full  or  not  full.  But  what 
was  the  case  now  I  The  house  which  he  (Mr.  Hincken)  represented  was 


2  NAVIGATION   INTERESTS. 

the  sole  survivor  of  four  similar  houses,  and  it  was  reduced  to  two 
ships.  The  trade  of  France  had  gone  into  foreign  steamers.  And  why? 
Because  American  houses  could  not  buy  and  sail  foreign-built  vessels. 
Certainly,  they  might  go  to  England  and  buy  steamers  and  run  them 
under  the  English  flag ;  but  he  asked  that  those  vessels  should  be  al 
lowed  to  run  under  the  American  flag,  if  there  was  any  national  im 
portance  attached  to  the  fact  that  the  carrying  trade  of  the  country 
should  be  done  under  the  American  flag. 

The  CHAIRMAN.  Cannot  ships  be  built  in  the  United  States  as 
cheaply  as  in  Europe,  provided  the  materials  used  in  the  construction 
are  obtained  free  of  duty  I 

Mr.  HINCKEN.  I  only  know  by  what  our  ship-builders  say — that,  if 
they  had  the  materials  duty  free,  they  would  compete  with  the  cheaper 
labor  on  the  other  side ;  but  they  could  not  compete  with  the  greater 
cost  of  the  materials.  I  am  told  that  England  allows  drawbacks  on 
everything  that  enters  into  the  construction  of  ships,  and  I  know  that 
she  does  upon  ship  stores.  If  I  take  a  cask  of  sugar  out  of  the  custom 
house  in  this  city,  it  will  cost  five  or  six  dollars  for  custom-house  fees 
besides  the  duty,  whereas  in  England  such  stores  are  admitted  free  of 
duty  and  of  fees;  so  that  this  operates  very  much  against  American  nav 
igation  interests.  There  is  no  provision  for  so  provisioning  ships  under 
our  revenue  laws. 

Mr.  AMBROSE  SNOW,  also  representing  the  New  York  Ship-owners?  As 
sociation,  said  that,  as  to  the  matter  of  cost  of  building  ships,  that 
could  be  very  well  explained  by  the  gentlemen  who  would  come  before 
the  committee  as  builders,  but  that  he  and  the  gentlemen  with  him,  rep 
resenting  the  Ship-owners'  Association,  confined  themselves  simply  to 
the  difficulties  that  they  met  in  the  prosecution  of  their  business.  They 
were  prepared  to  answer  any  questions  that  might  be  put  to  them  in 
that  connection. 

The  CHAIRMAN  said  that  he  had  asked  the  last  question  because  he 
supposed  that  the  gentlemen  who  were  members  of  the  Ship  owners7 
Association  knew  the  relative  cost  of  building  vessels  on  both  sides  of 
the  Atlantic. 

Mr.  SNOW  remarked  that  they  were  all  more  or  less  familiar  with  it, 
but  that  they  were  disposed  to  confine  themselves  to  the  difficulties 
which  they  had  to  contend  with  as  ship-owners,  and  to  the  condition  of 
the  ship-owning  interest.  It  was  very  apparent  that  the  foreigner  was 
taking  away  that  trade,  and  they  had  casl;  about  to  see  where  the  trouble 
lay.  They  could  see  that  there  was  no  way  for  them  to  compete  with 
the  foreigner,  unless  they  were  able  to  buy  ships  as  cheaply  as  foreigners 
bought  them,  and  they  had  settled  down  on  the  proposition  that  a  free 
navigation  law,  similar  to  the  law  passed  in  England  some  twenty  years 
ago,  was  what  would  relieve  the  ship-owners  of  the  United  States.  It 
seemed  rather  paradoxical  that  the  ship-owner  who  was  interested  in 
protection  should  at  the  same  time  be  in  favor  of  free  trade.  The  ship 
owners  of  the  United  States  had  now  the  whole  coasting  trade,  and  yet 
they  asked  for  free  trade  in  their  ships.  It  might  seem  natural  for  them 
to  oppose  free  trade,  but  they  did  not  ;  they  found  that  every  nation  in 
the  world  was  encouraging  free  trade  in  ships ;  they  found  that  all 
nations  had  faeen  forced,  from  one  cause  or  another,  to  recognize  that 
their  interests  lay  in  that  sort  of  free  trade.  The  ship-owners  of  New 
York  had  had  a  great  deal  of  discussion  on  the  subject,  and  they  had 
come  to  the  conclusion  that  a  free  navigation  law,  similar  to  the  law 
passed  in  England  some  twenty  years  ago,  would  relieve  the  shipping 
interest  more  than  any  other  thing.  If  American  ship-builders  could 


NAVIGATION    INTERESTS.  3 

compete  with  foreign  ship-builders  upon  the  allowance  of  a  drawback, 
then  the  free  navigation  law  which  the  ship-owners  advocated  would  not 
hurt  the  ship-builders.  The  question  was  not  so  much  one  of  building 
wooden  ships  in  Maine  as  it  was  a  question  of  occupying  the  ocean 
routes,  which  he  compared  to  railroad  routes.  The  route  of  the  Penin 
sular  and  Oriental  Steamship  Company,  which  started  from  South 
ampton,  touching  at  Marseilles,  and  which  went  from  Marseilles  to  Alex- 
auclria,  then  across  the  Isthmus  of  Suez,  then  down  the  Ked  Sea  and  to 
Hong  Kong,  and  from  Hong  Kong  across  to  San  Francisco,  and  from 
San  Francisco  to  Panama,  and  then  back  to  Southampton,  making  a 
complete  circuit  of  the  world,  might  be  considered  as  a  railroad  track 
round  the  world.  That  company  was  putting  on  just  as  many  steamers 
as  could  be  employed  in  the  trade,  and  was  thus  absorbing  the  trade. 
As  American  ship-owners  could  not  build  ships  to  compete  with  such 
companies,  they  held  that  free  trade  in  ships  should  be  made  the  law,  so 
that  they  could  buy  ships  where  they  could  buy  them  cheapest.  An 
other  line  of  ships,  starting  from  Southampton  and  touching  at  Bordeaux 
and  the  Canary  Islands,  going  thence  to  Valparaiso,  was  taking  posses 
sion  of  those  avenues  of  trade.  This  was  almost  like  laying  a  railroad 
track  across  a  continent.  Once  a  railroad  track  was  laid  to  San  Fran 
cisco,  there  was  not  any  great  encouragement  toward  laying  another 
railroad  track  near  it.  The  New  York  ship-owners  were  simply  asking 
for  a  law  to  enable  them  to  occupy,  as  it  were,  railroad  tracks  across  the 
Atlantic  Ocean,  and  they  had  settled  down  to  the  belief  that  the  only 
relief  which  they  should  ask  from  Congress  was  the  passage  of  a  free 
navigation  law.  He  remembered  very  well  the  passage  of  a  similar  law 
in  England  some  twenty  years  ago.  He  recollected  very  well  the  dis 
cussion  on  that  law.  The  ship-owning  interest  had  opposed  it  very  much. 
They  had  said  that  England,  of  all  other  nations,  should  keep  the  ship 
ping  trade  to  herself.  She  had  her  colonies  then  the  same  as  -she  had 
now,  and  could  build  cheap  ships.  She  had  a  very  large  colonial  trade, 
and  the  English  government  opened  the  whole  of  that  trade  to  competi 
tion.  And  yet,  during  the  twenty  years  since  then,  the  English  shipping 
trade  had  increased  enormously,  so  that  that  navigation  law  proved  to 
be  one  of  the  most  beneficial  measures  of  legislation.  If  Great  Britain 
were  to  do  with  this  country  what  this  country  was  doing  with  her,  and 
refuse  to  Americans  a  participation  in  her  colonial  trade,  American  ship 
owners  would  be  obliged  to  put  a  large  portion  of  the  ships  they  now 
own  under  the  British  flag,  in  order  to  get  employment  for  them.  The 
conclusion  that  American  ship-owners  had  come  to  was,  that  uncondi 
tional  free  trade  in  ships  was  what  they  must  have. 

Mr.  MORRELL.  Do  you  not  think  it  better  that  we  should,  if  possible, 
build  our  ships  in  this  country  ? 

Mr.  SNOW.  We  have  thought  of  that  a  good  deal,  and  there  are  many 
gentlemen,  particularly  ship-builders,  who  entertain  that  opinion. 

Mr.  MORRELL.  Will  it  not  in  the  end  be  likely  to  produce  the  same 
result  as  it  produced  in  England,  namely,  build  up  an  interest  which 
will  eventually  cheapen  the  cost  of  ships  ?  The  proposition  seems  to  me, 
so  far,  rather  beneficial  to  English  ship-builders  and  English  interests 
than  in  favor  of  American  interests  and  American  ship-builders. 

Mr.  SNOW.  If  American  ships  could  be  built  cheaper  than  English 
ships,  we  admit  that  that  would  be  a.  help.  We  also  think  that  a  bonded 
warehouse  system,  such  as  they  have  in  England,  would  be  of  much 
advantage  to  us.  Prior  to  the  war,  and  prior  to  having  any  internal 
revenue  tax  upon  our  goods,  we  did  not  feel  the  want  of  a  bonded  ware 
house  system  ;  but  now  we  do.  If  a  ship  is  taking  among  her  stores  a 


4  NAVIGATION    INTERESTS. 

barrel  of  whisky,  for  instance,  instead  of  buying  it  here  out  of  bond, 
at  cost  price  and  free  of  duty,  she  has  to  go  to  England  and  buy  it 
there ;  because  there  she  can  get  it  free  of  duty  and  here  she  cannot. 
In  England,  all  ships  going  abroad  take  their  stores  out  of  bond  free  of 
duty,  which  lessens  very  much  the  cost  of  the  outfit  of  the  ship.  Here 
there  is  no  such  provision,  and  we  need  it  very  much.  We  have  thought 
that  such  a  system  might  be  inaugurated  here  with  a  great  deal  of  profit. 
The  trade  of  ship-chandlers  in  this  city  has  been  almost  ruined  by  the 
difference  between  the  two  countries.  It  would  take  four  hundred  sail 
ing  ships  of  one  thousand  tons  each  to  do  the  work  which  the  European 
lines  of  steamers  to  this  port  now  do ;  and  those  steamers  buy  nothing 
here  except  their  fresh  stores.  They  buy  in  their  own  ports  our  pro 
ducts  which  go  from  here  abroad,  because  they  get  them  cheaper  than 
they  can  get  them  here.  It  will  be  seen  that  the  laws  governing  our 
commerce  in  this  respect  require  modification.  They  require  first-class 
talent  to  be  brought  to  their  examination,  and  they  require  complete 
modification.  It  is  the  defect  in  our  laws  that  is  putting  us  behind  other 
nations  in  the  carrying  trade.  A  few  years  ago  American  ships  always 
got  the  preference  in  fine  goods  and  fabrics  going  to  the  East;  but  now 
American  ships  get  no  fine  goods  for  trade;  they  get  nothing  but  the 
coarsest  articles.  In  England,  ship-building  has  been  so  much  improved 
that  England  is  now  a  first-class  nation  in  the  carrying  trade.  Hereto 
fore,  in  the  cotton  ports,  our  ships  always  got  one-sixteenth  of  a  penny 
per  pound  more  than  English  ships  did ;  but  now  we  do  not  get  any 
such  preference. 

Mr.  MORRELL.  That  is  to  be  attributed  to  the  introduction  of  steam, 
is  it  not  ? 

Mr.  SNOW.  No,  sir;  it  is  to  be  attributed  to  the  improvement  that  the 
English  have  made  in  the  building  of  their  ships.  From  being  a  first- 
class  carrying  nation  we  have  become  a  second  or  third-class  carrying 
nation. 

The  CHAIRMAN  remarked  to  Mr.  Snow  that  he  supposed  that  in  the 
matter  of  ship  stores  the  disadvantage  was  one  more  to  the  general  trade 
than  to  ship-owners  especially. 

Mr.  WELLS  inquired  as  to  the  relative  cost  of  iron  ships  and  wooden 
ships. 

Mr.  BRETT,  one  of  the  committee  of  the  New  York  Ship-owners7  Asso 
ciation,  remarked  that  he  found  that  question  answered  in  the  New  York 
Times  of  this  morning,  in  a  letter  from  a  correspondent,  who  was  sent 
to  Europe  for  the  purpose  of  inquiring  into  the  ship-building  business. 
He  (Mr.  Brett)  read  a  portion  of  the  letter,  and  asked  that  it  be  incor 
porated  in  the  proceedings  of  the  committee. 

As  the  author  of  this  letter  was  not  before  the  committee,  it  was  not 
deemed  proper  to  introduce  an  anonymous  paper  into  the  report. 

Mr.  HINCKEN  replied  that  it  affected  ship-owners  also,  and  that  if 
the  disbursement  bills  of  foreign  ships  at  this  port  were  examined  it 
would  be  seen  that  their  disbursements  for  ship  stores  were  confined  to 
articles  of  positive  necessity.  Ship-owners  would  buy  wherever  they 
found  stores  the  cheapest. 

The  CHAIRMAN.  The  point  is,  whether  an  American  master  provision 
ing  his  ship  in  a  foreign  port  is  placed  upon  the  same  footing  as  the 
masters  of  vessels  belonging  to  that  nation? 

Mr.  HINCKEN  replied  that  he  was.  American  ship-masters  bought 
their  ship  stores  abroad  on  the  same  terms  as  foreign  ship-masters.  In 
regard  to  the  building  of  iron  ships  in  this  country,  he  remarked  that  it 
would  not  do  to  suppose  that  they  could  be  built  here  at  first  as  good 


NAVIGATION   INTERESTS.  5 

and  as  cheap  as  they  were  now  built  upon  the  Clyde.  The  first  building 
of  them  here  would  necessarily  be  an  experiment,  and  very  few  ship 
owners  were  willing  to  try  that  experiment. 

Mr.  MORBELL.  Do  you  not  consider  it  an  advantage  that  we  should 
acquire  the  skill  and  facility  to  build  iron  ships  here? 

Mr.  HINCKEN.  Certainly. 

Mr.  MORRELL.  Would  it  not  be  better  for  us  to  so  legislate  as  to  make 
that  possible,  rather  than  to  drive  our  ship-owners  abroad  to  obtain 
ships  f 

Mr.  HINCKEN.  I  believe  it  would  be  much  better  if  we  could  so  legis 
late  that  ships  could  be  built  here ;  but  it  would  take  four  or  five  years 
to  acquire  that  facility  in  building  iron  ships  as  cheap  and  as  good  as 
they  are  now  built  on  the  Clyde,  and  that  period  of  four  or  five  years 
might  be  very  fatal  to  the  interests  of  commerce  in  this  country. 

Mr.  BRETT  read  a  letter  which  he  had  received  some  time  since  from  a 
very  intelligent  ship-master,  and  which  had  been  recently  published  in 
the  Journal  of  Commerce,  of  New  York. 

The  letter  is  as  follows : 

SAN  FRANCISCO,  September  10,  1869. 

DEAR  SIR  :  As  an  old  friend,  I  take  the  liberty  of  writing  you  a  few  lines  in  regard 
to  a  matter  in  which  I  know  you  take  a  deep  interest — that  is,  our  "  shipping." 
I  see  that  the  Ship-owners'  Society  of  New  York,  of  which  you  are  a  prominent  member, 
have  made  a  movement,  which  I  hope  will  lead  to  the  repeal  of  the  navigation  laws  ; 
laws  so  ancient  that  the  far-famed  "  oldest  inhabitant "  docs  not  remember  when  they 
were  made.  That  our  shipping  interest  has 'declined  no  one  will  deny.  The  cause, 
most  ascribe  to  the  war ;  but  I  do  not  think  this  a  correct  assumption.  The  war  I 
consider  an  accessary  after  the  fact  only.  The  main  cause  for  the  decline  of  our  ship 
ping  interest  I  ascribe  to  the  wording  of  our  reciprocity  treaties  and  the  existence  of 
our  navigation  laws.  Many  years  ago  Congress  passed  an  act  admitting  into  our  ports, 
on  the  same  terms  as  American  vessels,  the  vessels  of  all  foreign  nations  that  would 
extend  to  us  the  same  privilege  in  their  ports.  By  the  wording  of  these  treaties  foreign 
nations  are  allowed  to  bring  into  our  ports,  on  reciprocal  terms  with  an  American  ves 
sel,  all  vessels  sailing  under  their  flag.  Now  the  American  is  not  allowed  by  his  gov 
ernment  to  hoist  the  United  States  flag  on  any  but  an  American-built  ship,  and  at  the 
present  day  all  foreign  nations  allow  their  subjects  to  nationalize  vessels  without 
regard  to  where  they  are  built,  whether  at  home  or  in  a  foreign  country ;  and  those  ves 
sels  can  then  enter  a  United  States  port  on  the  same  terms  as  an  American-built  vessel. 
If  when  these  treaties  were  made  our  diplomats  had  understood  the  matter  in  hand, 
they  would  have  considered  that  as  the  American  flag  could  only  be  hoisted  (legally) 
on  an  American  bottom,  so  must  reciprocity  exact  the  same  of  the  foreigner,  and  only 
those  foreign  vessel*  be  admitted  to  reciprocity  that  were  bnilt  in  the  country  of  the 
flag  under  which  they  sailed. 

As  the  case  now  stands  the  Hamburger  can  go  to  England  or  Scotland,  buy  a  steamer, 
put  her  under  the  North  German  flag,  and  run  her  betAveeii  any  foreign  port  and  any 
port  in  the  United  States  with  all  the  privileges  of  and  in  effect  as  an  American  vessel. 
This  with  the  consent  of  our  own  government.  At  the  same  time  the  American  is  not 
allowed  by  his  laws  to  purchase  this  steamer  and  hoist  on  her  the  American  flag  And 
even  gives  'the  Hamburger  further  encouragement  by  giving  him  the  European  mails 
to  carry  from  our  country.  Here  we  see  our  government,  by  its  laws  and  acts,  encour 
aging  foreigners,  to  the  detriment  of  its  own  citizens.  I  suppose  no  one  will  dispute  at 
this  time  that  iron  steamers  are  much  better  than  those  built  of  wood,  for  ocean  navi 
gation,  as  regards  strength,  speed,  capacity,  and  economy.  The  high  cost  of  iron 
steamers  and  vessels  in  the  United  States  precludes  our  building  them,  and  if  not  al 
lowed  by  our  government  to  purchase  them  abroad,  we  must  go  without  them  and  see- 
all  foreign-carrying  trade  pass  out  of  our  hands.  Ship-owners  can,  and  have  the  right 
to,  demand  of  our  government  that  they  be  placed  by  our  laws  on  the  same  equality  as 
the  foreigner,  or  else  that  the  reciprocity  laws  be  repealed,  and  no  vessel  of  any  nation 
or  flag  be  allowed  to  come  into  our  ports  on  terms  of  reciprocity,  unless  it  be  those 
built  in  the  country  of  the  flag  under  which  they  sail.  Almost  all  the  iron  steamers  or 
sailing  vessels  are  built  in  Great  Britain ;  they  can  be  built  much  cheaper  there  than 
in  any  other  country.  A  first-class  iron  ship,  to  class  A  1  for  twenty  years,  with  an 
East  India  outfit,  which  includes  two  suits  of  sails,  three  bower  chains  and  anchors, 
and  in  fact  everything  belonging  to  the  ship,  except  provisions  and  cabin  stores,  can 
be  built  for  £14  10s.  per  ton  re#ti*er,  and  guaranteed  to  carry  one  and  a  half  tons  weight 
per  register  ton ;  also  to  attain  rt  speed  of  twelve  knots.  The  insurance  on  such  a  ship 


6  NAVIGATION    INTERESTS. 

oirt  to  Calcutta  and  back  is  two  and  a  half  per  cent.  I  know  you  are  fully  aware  of 
the  advantage  of  iron  in  the  construction  of  ships,  and  I  merely  mention  the  above  a-s 
facts  that  have  coine  under  my  own  observation.  There  is  another  matter  I  would 
wish  to  call  to  your  notice.  Last  summer  Mr.  Seward  made  an  arrangement  with 
Great  Britain  whereby  vessels  under  that  flag  could  enter  at  the  custom-house  in  the 
United  States  under  their  English  register  and  not  bo  remeasured,  American  ships  to 
enter  the  customs  in  England  under  their  American  register.  This  is  another  example 
of  the  smartness  of  our  diplomats.  Now,  in  England  American  ships  almost  invariably 
measure  less  than  they  do  (honestly)  at  home.  For  instance,  the  Norway,  that  I  now 
command,  measures  in  England  1,983  tons ;  United  States  register  says  2,107  tons,  a 
difference  of  124  tons.  By  this  American  register  now  dock  dues,  pilotage,  steam  hire, 
&c.,  'are  paid,  and  our  government,  in  its  great  desire  to  reciprocate  with  foreign  na 
tions,  obliges  me  to  pay  the  above  dues  on  124  tons  more  than  I  ought  or  would, 
prorided  the  above  arrangement  had  not  been  made.  The  Ne  Plus  Ultra,  that  I  com 
manded  before  this  ship,  was  1,534  tons  American  and  1,450  English ;  and,  if  necessary, 
I  could  give  you  many  other  instances  of  the  same  kind.  I  complained  to  the  English 
officials,  but  they  told  me  to  go  to  my'  own  government ;  it  was  it  that  made  the 
arrangement.  To  that  I  could  make  no  reply.  I  was  really  in  hopes  that  when  we  got 
a  new  Secretary  of  State  it  would  be  one  who  knew  how  to  make  a  bargain,  and  who 
would  get  value  equal  to  what  he  gave.  Of  Hamilton  Fish  I  have  not  much  hope. 
All  our  laws  relating  to  seamen  abroad  want  revising  as  they  now  stand.  Consuls  can 
do  as  they  please,  and  ship-masters  are  obliged  to  submit. 

Excuse"  this,  if  uninteresting,  for  the  good  of  the  cause. 
With  many  regards,  I  remain  vours,  truly, 

J.  T.  WOODBERRY. 

G.  A.  B.,  Esq. 

The  CHAIRMAN.  It  has  been  a  question  with  some  whether  we  really 
sail  our  vessels  as  cheaply  as  foreign  vessels  are  sailed,  on  account  of 
our  higher-priced  provisions  and  higher  wages  to  officers  and  men.  I 
want  to  get  at  the  views  of  you,  gentlemen,  as  to  whether  we  do  not 
really  stand  on  the  same  footing  with  foreign  vessels  in  that  regard,  as 
we  have  the  privilege  of  buying  at  foreign  ports,  and  as  foreign  vessels 
are  subject  to  the  same  disadvantages  as  American  vessels  in  buying  at 
American  ports;  in  other  words,  whether  that  thing  does  not  equalize 
itself,  and  whether  we  do  not  really  provision  our  vessels  as  cheaply  as 
foreigners  provision  theirs;  and  also,  whether  we  do  not  man  them 
nearly  as  cheaply  as  they  do,  we  having  the  privilege  of  manning  our 
vessels  with  foreign  crews  to  a  certain  extent  the  same  as  they  have. 

Mr.  SNOW.  When  our  vessels  are  in  the  same  trade  as  foreign  vessels, 
of  course  we  have  the  same  facilities  in  those  respects.  If  a  foreign  ves 
sel  was  in  our  port  bound  from  here  to  an  English  port,  she  would  have 
no  advantage  which  our  vessels  would  not  have;  but  if  we  are  fitting 
out  a  ship  to  go  from  here  to  the  East  Indies,  we  cannot  take  out  of 
bond,  duty  free,  the  ship  stores  that  we  want  for  that  voyage,  but  we 
have  to  pay  internal  revenue  tax  upon  them  ;  whereas  an  English  ship 
going  to  the  East  Indies  would  provision  herself  duty  free. 

The  CHAIRMAN.  Suppose,  for  instance,  that  an  American  line' of  steam 
ers  or  of  sailing  vessels  were  running  between  Liverpool  and  New  York, 
with  an  English  line  running  alongside  of  it,  would  not  both  biry  their 
stores  in  England  at  the  same  rates'? 

Mr.  SNOW.  Certainly. 

Mr.  CHAIRMAN.  And  both  would  buy  on  this  side  at  the  same  rates  ? 

Mr.  SNOW.  Certainly. 

The  CHAIRMAN.  The  vessels  of  both  lines  are  assumed  to  be  in  port 
and  out  of  provisions  the  same  number  of  times.  Are  they  not,  there 
fore,  really  equal  in  respect  to  the  purchase  of  ship  stores,  except  in 
their  first  outfit  ? 

Mr.  SNOW.  I  presume  so. 

The  CHAIRMAN.  Then  the  cost  of  provisions  is,  in  the  long  run,  no 
greater  to  an  American  vessel  than  to  an  English  vessel  ? 


NAVIGATION    INTERESTS.  7 

Mr.  SNOW.  That  is  so  when  they  are  trading  between  here  and  Eng 
land,  but  it  is  not  so  when  they  are  trading  between  here  and  Bio  Ja 
neiro,  or  Buenos  Ayres,  or  Havana.  The  vessels  that  get  their  stores 
here  do  not  get  them  free  of  duty,  whereas  the  English  vessels  going  to 
those  ports  get  their  stores  free  of  duty.  I  grant  you  that  when  trading 
directly  to  England,  American  vessels  would  be  on  the  same  footing 
precisely  as  English  vessels. 

The  CHAIRMAN.  But  the  foreign  and  American  vessels  that  pursue 
the  same  trade  stand  on  precisely  the  same  footing? 

Mr.  SNOW.  Precisely ;  if  English  ships  were  running  from  here  to 
Havana,  they  would  be  on  the  same  footing  precisely  as  American  ships 
in  the  same  trade.  As  to  ship-building,  capital  is  being  diverted  from 
that  branch  of  industry  to  something  else.  Take  an  eastern  ship-build 
ing  town  where  the  people  have  been  in  the  habit  of  investing  their 
capital  in  ships.  They  find  now  that  that  business  has  become  uiire- 
munerative,  and  little  by  little,  as  their  ships  are  sold  off,  their  capital 
is  diverted  into  something  else,  and  the.  town  ceases  ultimately  to  be  a 
ship-owning  town.  There  are  towns  in  Maine  that  have  ceased  to  be 
ship-owning  towns  in  consequence  of  the  depression  in  commerce. 
When  you  do  not  protect  the  ship-owner,  the  ship-builder  has  no  market, 
and  the  matter  of  first  importance  is  to  make  a  market.  If  you  want 
to  protect  the  ship-builders,  there  must  be  somebody  for  them  to  sell  to. 
Now,  if  all  the  capital  is  driven  out  of  that  business  and  diverted  into 
other  channels,  most  of  the  people  engaged  in  ship-building  will  in  ten 
years  have  gone  out  of  the  business ;  the  father  will  die  and  the  sons 
will  not  be  brought  up  in  it.  If  it  is  a  matter  of  importance  that  our 
commerce  shall  be  retained,  something  must  be  done  for  that  purpose 
sooner  than  it  can  be  done  by  the  means  of  granting  drawbacks  to  the 
builders. 

The  CHAIRMAN.  If  you  buy  your  ships  as  cheap,  can  you  sail  them 
in  competition  with  foreign  ship-owners  I 

Mr.  SNOW.  I  think  we  can ;  there  is  no  doubt  of  it  ;  but  if  we  want 
to  run  a  line  of  steamers  between  here  and  England,  in  competition  with 
the  English,  we  must  have  vessels  fully  equal  to  theirs  in  every  respect. 
They  recently  built  two  steamers  in  Boston  which  cost  fourteen  hundred 
thousand  dollars.  One  of  them  went  one  voyage,  and  the  other  never 
has  been  at  sea.  One  of  the  owners  talked  with  me  the  other  day  about 
buying  those  ships  at  six  hundred  thousand  dollars.  He  said  to  me  that 
if  I  would  take  a  half  interest  in  them,  he  would  take  the  other  half, 
and  I  could  keep  the  management  of  them  and  run  them  in  the  Liver 
pool  trade.  Now  that  seemed  to  be  a  very  good  opening,  the  ships 
being  cheaper  than  English  ships  ;  but  I  venture  to  say  that  you  cannot 
run  those  ships  by  the  side  of  the  existing  lines  of  steamships,  because 
you  would  have  to  contend  with  all  the  adverse  influences  that  would 
be  brought  to  bear  by  the  first-class  iron  ships  in  that  trade.  That  is 
the  position  we  are  brought  to.  There  is  no  use  in  looking  at  it  in  any 
other  way. 

The  CHAIRMAN.  Could  not  that  be  on  account  of  the  want  of  adap 
tation  of  those  ships  to  that  particular  business  ? 

Mr.  SNOW.  They  are  very  fine  wooden  ships  ;  but  those  foreign  ships 
occupy  the  ground.  You  cannot,  for  instance,  put  another  line  of  rail 
road  alongside  of  the  Pacific  railroad  after  the  present  line  has  got  the 
start.  Any  other  company  going  in  would  have  to  meet  with  so  many 
disadvantages,  as  would  be  ruinous  to  them. 

The  CHAIRMAN.  You  mean  that  a  regularly  established  line  has 
advantages  ? 


8  NAVIGATION   INTERESTS. 

Mr.  SNOW.  Yes,  it  has  all  the  advantages.  But  what  I  wish  to  im 
press  upon  the  mind  of  the  committee  is,  that  we  are  letting  foreign 
ship-owners  take  possession  of  all  those  routes,  and  that  when  once  they 
have  possession,  we  cannot,  even  though  we  may  get  vessels  as  cheap 
or  cheaper  than  theirs,  cut  inside  of  them  with  any  prospect  of  success. 

The  CHAIRMAN.  Does  that  apply  to  the  general  freighting  business 
as  well  as  to  established  lines  of  steamers  I 

Mr.  SNOW.  Not  so  much ;  but  a  general  revolution  in  business  has 
been  going  on,  and  we  are  being  run  out  of  the  business.  We  are  sail 
ing  wooden  ships,  and  cannot  participate  in  the  business  of  running 
iron  ships. 

Mr.  MORRELL.  Are  these  Boston  ships  unfit  to  enter  into  competi 
tion  with  foreign  vessels  f 

Mr.  SNOW.  We  build  the  finest  wooden  vessels.  When  the  Cunard 
folks  withdrew  their  line  to  Boston,  the  Boston  people  felt  a  great  deal 
of  pride  in  having  a  line  of  their  own,  and  they  built  those  two  ships, 
hoping  to  get  a  subsidy  from  the  government,  and  intending  to  build 
other  ships,  and  to  have  a  successful  line. 

Mr.  WELLS.  Are  not  the  English  steamers  that  are  running  here 
mostly  subsidized  by  the  English  government  ? 

Mr.  SNOW.  No,  sir;  there  are  a  few  lines  subsidized  by  the  govern 
ment.  Speaking  of  subsidies,  our  ship-owners,  as  a  rule,- would  oppose 
with  all  their  influence  any  subsidy,  because  it  would  be  building  up 
the  interests  of  a  few  to  the  prejudice  of  a  great  many.  In  England 
they  have  subsidized  steamers,  and  the  result  has  been,  perhaps,  up  to 
this  time,  profitable ;  but  subsidies  would  not  be  favored  by  the  ship- 
owning  interest  in  this  country. 

The  CHAIRMAN.  I  understand  you  to  give  it  as  your  opinion,  that  in 
the  general  freighting  business,  if  an  American  ship-owner  could  procure 
his  ships  as  cheaply  as  the  foreign  ship-owners  procure  theirs,  he  could 
run  them  in  competition  with  foreigners,  except  in  regard  to  those 
established  lines  ? 

Mr.  SNOW.  I  would  not  individually  go  so  far  as  to  say  what  we  could 
do  in  that  way;  but  after  all  the  discussion  that  we  have  had  on  the  sub 
ject,  we  have  come  to  the  conclusion  that  if  there  is  anything  that  will 
help  us,  this  one  thing  is  what  will  help  us,  namely,  giving  us  the  benefit 
of  free  trade  in  ships.  I  do  not  believe  that  ship-owners  generally 
claim  to  be  sure  that  that  would  relieve  them  entirely.  It  is  possible 
that  the  foreigner,  having  still  other  advantages,  may  do  better  than  we 
can  do,  but  we  have  faith  to  suppose  that  we  should  compete  success 
fully  with  foreigners  in  that  trade.  We  want  a  law  giving  us  the  privi 
lege  of  purchasing  where  we  can  purchase  cheapest.  There  is  no  other 
nation  in  the  world  that  does  not  purchase  ships  wherever  she  can  pur 
chase  them  to  the  best  advantage. 

Mr.  WELLS.  Do  you  believe  that  a  drawback  of  the  small  duty  of 
twenty  per  cent,  or  ten  per  cent,  on  materials  entering  into  ship-building 
would  remedy  the  evil  ? 

Mr.  SNOW.  I  think  it  would  help. 

Mr.  BRETT  expressed  the  belief  that  if  American  ship-owners  could 
procure  their  vessels  as  cheaply  as  foreigners  do  they  could  compete 
successfully  with  any  foreign  line.  Although  it  cost  more  to  sail  Ameri 
can  vessels,  still,  the  superiority  of  the  American  ship-masters  was 
more  than  an  equivalent  for  that.  He  mentioned  the  case  of  an  Austrian 
vessel  which  recently  arrived  at  this  port,  taking  one  hundred  and 
twenty-nine  days  to  come  from  Bordeaux.  She  was  manned  by  Austrians, 
Avho  received  only  $8  a  month,  her  captain  receiving  only  $40  a  month; 


NAVIGATION    INTERESTS.  9 

whereas  American  crews  received  from  $25  to  $30  a  month,  and  an 
American  captain  from  $125  to  $150  a  month.  But  with  all  that  differ 
ence  in  the  cost  of  running,  he  believed  that  the  American  vessels  could 
compete  with  foreign  vessels,  on  account  of  the  greater  activity  and 
intelligence  of  the  Yankee  officers  and  seamen. 

The  CHAIRMAN.  Let  me  ask  you  if  that  same  superiority  is  not  mani 
fested  by  American  mechanics  and  workmen  ? 

Mr.  BRETT  replied  that  it  was.  He  said  that  mechanics  in  this  country 
now  demanded  five  dollars  a  day  for  their  labor,  whereas  in  England 
they  obtained  only  five  shillings  sterling  a  day;  and  he  thought  that, 
having  to  pay  five  dollars  a  day  for  skilled  workmen  in  the  building  of 
ships,  American  ship-builders  could  not  successfully  compete  with  Eng 
lish  ship-builders.  That  was  the  reason  why  the  Ship-owners'  Associa 
tion  asked  the  privilege  of  buying  vessels  where  they  could  buy  them 
cheapest,  and  of  having  such  vessels,  when  purchased,  navigated  under 
the  American  flag. 

The  CHAIRMAN.  What  I  want  to  get  at  is  whether,  although  American 
labor  costs  more  than  foreign  labor,  its  greater  efficiency  does  not  over 
come  the  difference  in  the  rate  of  wages. 

Mr.  BRETT.  Our  labor  is  no  better,  so  far  as  mechanical  skill  and 
work  are  concerned,  than  it  is  in  England. 

The  CHAIRMAN.  But  do  not  our  workmen  accomplish  more  in  the  same 
time. 

Mr.  BRETT.  No ;  English  laborers  do  more  work.  They  work  a  greater 
number  of  hours,  and  do  much  more  labor  in  a  day  than  the  mechanics 
in  our  yards  do,  because  our  workmen  are  so  independent  that  unless  the 
boss  allows  them  all  the  privileges  which  they  demand,  they  immediately 
knock  off  work  and  go  to  some  other  yard ;  and  the  demand  for  skilled 
labor  in  this  country  is  so  great  that  we  cannot  successfully  compete 
with  England. 

Mr.  MORRELL.  Is  that  the  case  in  the  ship-building  business  ? 

Mr.  BRETT.  It  is. 

Mr.  MORRELL.  Then  I  would  infer  from  that  that  the  ship-building 
business  is  not  so  very  much  depressed. 

Mr.  BRETT.  So  far  as  this  city  is  concerned,  our  ship-workmen  de 
mand  the  same  rate  of  "wages  that  they  did  during  the  war. 

Mr.  HAYDEN,  of  Bath,  Maine,  representing  the  ship-building  interest 
of  Maine,  addressed  the  committee  in  reference  to  the  question  of  ob 
taining  ship  stores  free  of  duty,  and  as  to  whether  that  privilege  was 
reciprocal  between  other  nations  and  ours.  So  far  as  the  direct  trade 
between  this  country  and  England  was  concerned,  he  admitted  that  the 
advantages  were  reciprocal,  but  showed  that  in  regard  to  the  trade  from 
New  Orleans,  Savannah,  Norfolk,  and  other  southern  ports,  the  advan 
tages  were  not  reciprocal.  American  vessels  going  to  those  ports  had  to 
pay  duty  upon  all  their  stores,  whereas  British  vessels  going  to  British 
ports  had  their  stores  free  of  duty,  and  came  directly  into  competition 
with  American  vessels  for  the  freights  from  those  ports.  The  advantage, 
therefore,  was  evidently  with  the  foreign  vessels,  and  against  American 
vessels,  So  it  was  with  the  trade  to  Cuba,  and  the  West  Indies,  South 
America,  and  all  over  the  world,  except  in  the  direct  line  from  this  country 
to  England. 

Mr.  BRETT  read  to  the  committee  a  resolution  which  he  had  submitted 
last  evening  to  the  Ship-owners'  Association,  and  which  it  had  been 
thought  prudent  to  lay  over  for  the  present.  The  resolution  is  as  fol 
lows: 

Resolved,  That  the  committee  of  this  assoociation  appointed  to  confer  with  the  con 
gressional  Committee  on  Commerce  and  Navigation  be  instructed  to  express  the  viewB 


10  NAVIGATION   INTERESTS. 

of  this  association  as  desiring  for  American  citizens  the  right  of  purchasing  vessel  prop 
erty  in  any  part  of  the  world  where  they  may  find  it  most  advantageous  to  do  so,  which 
vessel  or  vessels,  when  so  purchased,  shall  be  entitled  to  all  the  privileges  of  United 
States  registry. 

Mr.  MORRELL.  Can  you  tell  how  much  more  per  ton  it  costs  to  build 
an  iron  ship  here  than  it  costs  to  build  one  in  England  ? 

Mr.  SNOW.  Iron  ships  are  now  built  in  England,  classed  A  No.  1,  for 
from  £12  10s.  to  £14  a  ton.  Steamers  will  cost  about  £20  a  ton. 

Mr.  WELLS.  What  do  they  cost  in  this  country  ? 

Mr.  SNOW.  There  have  been  very  few  iron  ships  built  here,  and  I  do 
not  know  what  they  cost.  The  ship-builders  will  be  able  to  answer  that 
question. 

Mr.  WELLS.  -What  does  it  cost  to  build  wooden  ships  here  1 

Mr.  SNOW.  Wooden  ships,  classed  A  No.  1  for  about  nine  years,  are 
costing  now  about  $80  in  currency  per  ton. 

Mr.  BRETT.  These  questions  are  answered  in  the  coinmraiication  from 
the  Journal  of  Commerce,  to  which  I  have  already  directed  the  atten- 
of  the  committee. 

Mr.  SNOW  remarked,  in  speaking  of  iron  ships,  that  an  American  ship 
captain  had  mentioned  to  him  the  other  day  the  case  of  the  iron  ship 
Richard  Cobden.  which  had  been  built  about  thirty  years  ago,  and  which 
had  been  registered  in  England  some  time  since  for  ten  years  longer, 
making  her  classification  run  for  forty  years.  He  mentioned  in  that 
connection  that  the  life  of  a  wooden  ship  is  usually  considered  as  ten 
years,  although  by  extensive  repairs  they  are  sometimes  made  to  last 
twenty  years. 

The  CHAIRMAN.  Have  you  ever  got  any  proposals  from  American  iron 
ship-builders,  so  as  to  know  what  iron  ships  could  be  built  here  for  ? 

Mr.  SNOW.  No,  sir ;  I  am  not  prepared  to  say  what  they  can  be  built  for 

"here.    There  is  only  one  yard  in  this  country  that  builds  iron  ships  that 

I  know  of;  that  is  the  yard  of  Harlan  &  Hollings worth,  in  Wilmington, 

Delaware.    I  understand  that  they  would  contract  to  build  iron  ships 

on  English  specifications  at  the  same  price  as  they  are  built  in  England. 

Mr.  BRETT.  That  has  been  rumored  here  for  some  time,  but  I  under 
stand  it  has  never  been  carried  out.  I  understand  that  they  did  build 
one  iron  ship,  the  Costa  Rica,  for  the  Panama  Railroad  Company. 

Mr.  MORRELL.  How  does  the  ship  compare  with  foreign-built  iron 
ships  ? 

A  MEMBER  OP  THE  SHIP-OWNERS'  ASSOCIATION.  She  went  down  to 
Aspinwall,  and  was  wrecked  within  three  months  after  her  arrival. 

The  CHAIRMAN  understood  that  there  was  one  American-built  iron  sail 
ing  ship  in  this  port  now. 

Mr.  SNOW  had  heard  of  it,  but  did  not  knowthe  particulars.  But  if 
it  were  a  fact  that  American  builders  can  build  iron  ships  as  cheaply  as 
the  English  can,  that  was  no  argument  against  free  trade  in  ships,  be 
cause  that  fact  would  be  all  the  more  in  their  favor.  If  American  build 
ers  can  build  as  cheaply  as  English  builders  can,  we  should  not  go  abroad 
to  get  ships,  only  in  such  measure  as  our  own  builders  cannot  supply 
them  fast  enough. 

The  committee  from  the  Ship-owners'  Association  thereupon,  having 
submitted  their  views,  withdrew  from  the  committee  room. 

Mr.  JOHN  HAYDEN,  of  Bath,  representing  the  Ship-builders'  Association 
of  Maine,  remarked  that  he  had  now  very  little  interest  in  ship-building, 
as,  owing  to  the  effect  of  the  present  laws  upon  that  trade,  he  had  grad 
ually  got  out  of  it,  so  that  the  position  which  he  took  upon  the  subject  he 
took  upon  national  considerations,  not  on  personal  considerations.  If  the 


NAVIGATION    INTERESTS.  11 

disabilities  that  were  now  imposed  upon  American  shipping,  and  which 
prevented  the  building  of  ships  in  this  country  as  cheap  as  they  could 
be  built  in  other  countries,  were  removed,  the  ship-building  trade  would 
be  revived  in  a  very  short  time,  and  ships  would  be  built  in  this  country 
as  cheaply  as  in  any  other  country ;  instead  of  Americans  going  abroad 
to  buy  ships  the  people  of  other  countries  would  be  coming  here  to  buy 
them,  as  they  did  before  the  war.    He  regarded  the  remedy  proposed 
by  the  New  York  Ship-owners'  Association  as  one  which  would  be  dis 
astrous  to  the  ship-building  interest.    He  argued  that  if  the  govern 
ment  should  take  the  present  burden  off  American  ship-builders,  and 
still  should  allow  them  no  time  to  fill  the  void  existing  in  the  American 
shipping  trade,  but  would  give  the  ship-owners  time  to  fill  up  that  void 
with  the  refuse  ships  of  Europe,  American  ship-yards  would  be  rendered 
inactive  for  all  time  to  come.    But  if  a  little  time  were  allowed  (two  or 
three  years  would  be  sufficient  in  his  estimation  to  give  American  ship 
builders  all  the  start  they  wanted)  they  could  fill  this  void  that  had 
been  created,  and  things  would  go  on  as  smoothly  as  before.    Why  did 
Great  Britain  own  such  a  large  amount  of  shipping  as  she  now  owned  ? 
It  was  because,  during  the  late  contest  in  this  country,  American  ships 
had  been  sold  to  England.    He  himself'had  gone  over  to  England  and 
sold  two  of  his  ships.    England  had  thus  filled  up  her  trade,  while 
Americans  had  been  depleting  theirs  ,•  besides  that,  the  extra  cost  of 
ship-building  in  this  country  was  now  so  great  as  almost,  not  quite, 
to  annihilate  American  ship-building.    The  British  kept  on  building, 
and  now  they  had  four  or  five  times  the  tonnage  engaged  in  the  foreign 
carrying  trade  that  Americans  had.    The  remedy  for  the  evil  was  to 
remove  those  disabilities.    He  suggested  that  a  certain  amount  per  ton, 
the  exact  figures  to  be  obtained  by  estimates,  should  be  allowed  as  a 
drawback  upon  every  vessel  built  in  this  country,  as  an  equivalent  for 
the  duty  paid  on  the  copper,  iron,  cordage,  sail-cloth,  &c.,  used  in  her 
construction.    He  thought  that  with  these  allowances  American  ship 
builders  could  compete  with  foreign  nations.     He  put  this  on  high 
national  grounds.    It  was  of  the  utmost  importance  that  the  country 
should  be  in  a  position,  in  regard  to  her  mercantile  marine,  to  deter 
other  nations  from  going  to  war  with  her.    If  she  put  herself  in  that 
position  she  would  insure  peace,  and  thereby  prevent  the  cost  of  war. 
It  was  incumbent  on  this  country  to  have  a  large  mercantile  marine, 
and  to  have  American  sailors  to  man  her  ships,  and  to  have  skilled 
mechanics  of  every  kind  on  hand ;  and  all  this  could  not  be  secured  if 
the  ship-building  interest  was  allowed  to  decay.    He  considered  that  if 
the  other  course  were  to  be  adopted,  namely,  the  course  proposed  by 
the  New  York  Ship-owners'  Association,  the  mechanics  skilled  in  ship 
building  would  either  leave  that  business  and  turn  to  some  other  branch 
of  industry,  or  would  leave  the  country  and  go  where  they  could  profit 
ably  pursue  their  business,  and  that,  consequently,  in  the  time  of  emer 
gency,  we  would  not  have  skilled  mechanics  to  extemporize  a  defensive 
or  offensive  fleet.     He  held  that  it  was  of  vast  importance  that  this 
country  should  retain  the  carrying  trade  and  the  profits  arising  there 
from. 

Mr.  WELLS.  What  do  you  propose  ? 

Mr.  HAYDEN.  I  propose  the  allowance  of  drawbacks  on  the  amount 
of  materials  used  in  ship-building.  I  think  that  nothing  else  would  be 
requisite.  Let  us  have  this  and  we  can  build  ships  as  cheaply  as  other 
nations  can.  The  ship-owners  of  New  York,  who  have  one  particular 
view  of  the  question,  would  be  in  a  very  short  time  satisfied,  because 
things  would  return  to  the  condition  they  were  in  ten  years  ago. 


12  NAVIGATION   INTERESTS. 

would  have  no  more  cause  of  complaint  than  they  had  then.  It  is  not 
necessary  that  we  should  always  have  a  navy  on  hand,  but  it  is  neces 
sary  that  we  should  always  have  skilled  mechanics  to  construct  a  navy. 

Mr.  HOLMAN  inquired  of  Mr.  Hayden  as  to  the  extent  to  which  Great 
!  Britain  had  been  engaged  in  the  purchase  of  American  vessels  before 
the  war. 

Mr.  HAYDEN  said  that  he  was  not  able  to  state  that  definitely,  but  he 
had  been  in  ports  of  Great  Britain  and  of  the  Continent,  and  had  seen  a 
great  many  ships,  which  he  knew  to  be  American-built  ships,  under  the 
Sags  of  foreign  nations.  Still  he  would  not  state  in  what  proportion 
other  nations  were  purchasers  of  American  ships. 

Mr.  HOLMAN  inquired  to  how  late  a  date  citizens  of  other  nations  had 
been  purchasers  of  American-built  ships. 

Mr.  HAYDEN  replied  that  the  last  one  he  had  himself  sold  in  England 
was  sold  in  18G4. 

Mr.  HOLMAN  inquired  whether  ships  had  been  built  in  the  United 
States  for  foreign  capitalists  upon  contracts. 

Mr.  HAYDEN  replied  that  he  did  not  think  they  were,  except  in  some 
few  instances.  The  rule  generally  was  to  send  them  abroad  with  freight, 
or  in  ballast. 

Mr.  HOLMAN  inquired  whether  c^>  to  1860  wooden  ships  had  been  built 
as  cheaply  in  the  United  States  as  in  England  or  on  the  Continent. 

Mr.  HAYDEN.  Undoubtedly ;  and  they  could  be  sold  so  as  to  compete 
with  foreign-built  vessels. 

Mr.  HOLMAN.  Labor  was  higher  in  the  United  States  ? 

Mfr.  HAYDEN.  Yes,  sir. 

Mr.  HOLMAN.  But  materials  were  cheaper  ? 

Mr.  HAYDEN.  I  do  not  know  that;  but  persoos  who  have  seen  our 
mechanics  at  work  in  this  country,  and  have  seen  mechanics  at  work  in 
other  countries,  cannot  help  appreciating  the  vast  difference  there  is  be 
tween  them.  On  this  point  Mr.  Hayden  proceeded  to  give  some  illus 
trations. 

Mr.  WELLS.  Is  the  skill  of  American  laborers  so  much  superior  to 
that  of  English  laborers  I 

Mr.  HAYDEN.  I  will  not  say  as  to  England.  The  illustration  I  have 
given  had  reference  to  France. 

Mr.  HOLMAN.  Your  theory  is  that  American  labor,  considering  its 
quality,  is  actually  cheaper  than  foreign  labor  ? 

Mr.  HAYDEN.  Exactly  so. 

Mr.  HOLMAN.  And  you  think  that  if  drawbacks  were  allowed  on  mate 
rials  entering  into  the  construction  of  ships,  ships  could  be  built  as 
cheaply  in  this  country  as  abroad? 

Mr.  HAYDEN.  I  have  no  doubt  of  it. 

Mr.  HOLMAN.  Supposing  that  policy  were  adopted,  how  many  years 
would  be  requisite  to  construct  any  considerable  number  of  ships  so  as 
to  materially  increase  our  mercantile  marine? 

Mr.  HAYDEN.  So  far  as  wooden  ships  are  concerned,  a  good  deal  might 
be  done  in  one  year ;  but  I  can't  say  as  to  iron  ships.  Iron  ships  have 
been  laid  and  constructed  in  this  country — in  Boston  and  in  Wilming 
ton — and  I  cannot  entertain  a  doubt  that,  if  due  encouragement  were 
given,  the  building  of  iron  ships  here  would  succeed  as  well  as  in  any 
other  nation. 

Mr.  HOLMAN.  Suppose  that  the  policy  were  adopted  of  allowing  Amer 
ican  registrations  to  foreign-built  vessels,  either  without  the  payment  of 
any  duty,  or  with  the  payment  of  a  small  duty,  imposed  upon  the  ton 
nage;  and  suppose  at  the  same  time  that  a  drawback  were  allowed  upon 


NAVIGATION   INTERESTS.  13 

the  materials  entering  into  the  construction  of  ships  in  this  country, 
what  would  be  the  effect  of  that  policy  on  the  shipping  interest  of  the 
country? 

Mr.  HAYDEN.  The  immediate  eifect  would  be  that  the  ships  already 
built  by  other  nations  would  flow  in  here  at  first  and  fill  the  void  so  as 
to  deprive  our  mechanics  of  the  opportunity  to  do  so.  ' 

Mr.  HOLMAN.  Suppose  that  such  vessels  as  were  purchased  abroad 
were  excluded  from  the  coastwise  trade,  and  that  American-built  vessels 
had  the  exclusive  coastwise  trade,  how  would  that  policy  affect  both  the 
commerce  of  the  country  and  the  ship-building  interest  ? 

Mr.  HAYDEN.  In  reference  to  the  coastwise  trade,  I  do  not  think  that 
we  derive  any  advantage  now  from  the  discrimination  in  our  favor.  What 
American  who  is  concerned  in  shipping  at  all,  and  who  wishes  to  invest 
money  in  it,  would  invest  his  money  in  coasting  vessels  rather  than  in 
foreign  trading  vessels'?  What  little  of  the  foreign  trade  we  have  is 
better  to  us  than  the  coasting  trade,  so  that  I  do  not  see  any  objection 
at  all  to  removing  altogether  the  restrictions  on  the  coastwise  trade. 

Mr.  MORRELL.  Is  the  foreign  trade  better  than  the  coasting  trade? 

Mr.  HAYDEN.  There  is  more  money  made  out  of  it. 

Mr.  MORRELL.  The  coasting  trade  is  entirely  in  our  own  hands? 

Mr.  HAYDEN.  Yes ;  but  that  is  a  trade  which  requires  but  little  capi 
tal,  and  the  competition  is  already  complete,  so  that  there  is  no  room 
for  foreigners  to  get  into  that  trade. 

Mr.  HOLMAN.  But  by  persevering  in  that  policy  some  encouragement 
and  protection  would  be  furnished  to  ship-builders. 

Mr.  HAYDEN.  Let  the  whole  matter  remain  as  it  is  for  a  few  yjears, 
(in  my  judgment  three  years  would  be  sufficient,)  and  let  American 
ship-builders  be  allowed  drawbacks  on  the  materials,  and  then  I  shall 
be  perfectly  willing,  as  one  interested  in  shipping  and  as  a  citizen  of  the 
United  States,  to  repeal  all  navigation  laws,  and  to  make  them  just  as 
the  British  navigation  laws  now  are.  But  if  we  admitted  free  trade  in 
ships  at  once,  the  effect  would  be  to  crowd  in  all  the  refuse  vessels  of 
foreign  nations,  so  that  it  would  take  some  time  before  we  could  have 
anything  to  do.  It  would  be  a  blow  to  ship-building  worse  than  any 
thing  that  we  have  yet  received. 

Mr.  HOLMAN.  Can  those  inferior  vessels  compete  with  the  foreign 
lines  already  established  ? 

Mr.  HAYDEN.  Of  course  we  would  want  equally  good  vessels  to  con> 
pete  with  them.  The  British  have  the  whole  run  now. 

Mr.  HOLMAN.  As  to  the  ordinary  carrying  trade,  would  not  the  pref 
erence  be  given  to,  and  a  lower  rate  of  insurance  required  on,  the  supe 
rior  vessel?  As  a  commercial  adventure,  would  there  be  any  advan 
tage  in  purchasing  those  inferior  foreign-built  vessels  ? 

Mr.  HAYDEN.  No  ;  but  a  great  many  would  be  brought  in  for  general 
business.  In  reference  to  the  letter  published  iu  the  Journal  of  Com 
merce,  to  which  the  attention  of  the  committee  hos  been  called  to-day, 
it  was  written  by  a  gentleman  of  San  Francisco,  and  it  is  not  necessary, 
I  presume,  to  say  anything  about  it,  because  the  testimony  amounts  to 
nothing.  He  says  that  iron  ships  can  be  built  at  £14  10$.  a  tonj  but  I 
am  very  incredulous  on  that  point,  as  I  think  it  costs  very  much  more. 
Any  letter  written  in  that  way  is  a  very  loose  kind  of  evidence. 

Mr.  HOLMAN.  Do  you  know  how  long  it  is  since  any  European  nation 
has  imposed  restrictions  on  the  granting  of  registers  to  foreign-built 
vessels  entering  into  their  commercial  marine? 

Mr.  HAYDEN.  I  do  not  recollect,  myself,  except  by  what  has  been  al- 


14  NAVIGATION   INTERESTS. 

ready  stated  here  as  to  Great  Britain,  which  removed  such  restrictions 
about  twenty  years  ago. 

Mr.  HOLMAN.  Has  any  nation,  within  the  last  twenty  years,  adhered 
to  that  policy  f 

Mr.  HAYDEN.  I  do  not  know  ;  T  cannot  testify  on  that  point. 

Mr.  HOLMAN.  You  spoke  of  the  importance  of  protecting  the  ship 
building  interest,  as  a  national  measure,  on  account  of  the  necessity  ol 
being  prepared  for  emergencies  in  case  of  war.  How  far  has  the  expe 
rience  of  this  country,  say  from  the  beginning  of  the  war  of  1812  up  to 
this  time,  demonstrated  the  facilities  of  improvising  an  effective  navy 
for  war  purposes  out  of  the  commercial  navy  of  the  country  ? 

Mr.  HAYDEN.  I  suppose  I  know  no  more  on  that  point  than  any  other 
person ;  but  I  suppose  it  will  be  conceded  by  every  one  that  we  were  in 
a  good  condition  at  the  beginning  of  the  late  war.  At  the  beginning  of 
the  war  of  1812  we  were  not  in  so  good  a  condition,  because  the  embargo 
had  almost  annihilated  our  shipping  interest. 

Mr.  HOLMAN.  In  a  national  point  of  view  your  argument  would  be  in 
reference  to  the  facilities  for  building  ships  for  war  purposes. 

Mr.  HAYDEN.  Exactly ;  and  to  the  advantages  which  the  country 
would  have  from  the  carrying  trade. 

Mr.  HOLMAN.  Would  not  that  result  follow  as  well  from  American 
citizens  being  the  owners  of  foreign-built  vessels? 

Mr.  HAYDEN.  Yes,  sir;  undoubtedly. 

Mr.  HOLMAN.  So  that  the  other  is  the  real  advantage  for  encouraging 
that  particular  industry? 

Mr.  HAYDEN.  Yes,  sir.  It  will  be  recollected  that  in  the  war  of  1812 
the  frigate  which  took  the  principal  part  in  the  action  "on  Lake  Erie 
was  built  in  eighteen  days  from  the  time  that  her  keel  was  laid.  If  we 
had  not  had  skilled  mechanics,  such  a  thing  could  not  have  been  done. 

Mr.  P.  M.  WETMORE,  of  New  York  City,  made  some  remarks  to  the 
committee  in  reference  to  a  proposition  which  had  been  made  by  him 
during  the  late  civil  war,  to  send  out  privateers  against  British  com 
merce,  and  said  that  if  that  had  been  done  British  commerce  would  have 
been  swept  from  the  seas  to  a  greater  extent  even  than  the  American 
commerce  had  been.  He  also  advocated  the  subsidizing  of  American 
lines  of  steamships,  giving  some  facts  in  reference  to  former  subsidies 
to  the  Collins  line,  and  to  the  two  lines  owned  by  Mr.  Law  and  Mr. 
Aspinwall.  He  declared  his  belief  that  whenever  the  United  States 
government  would  restore  the  system  of  giving  a  reasonable  subsidy  to 
mail  steamers  on  the  ocean,  it  would  be  a  happy  day  for  the  commerce 
of  the  country.  Americans  to-day  could  not  send  a  letter  to  any  nation 
in  Europe  without  hiring  a  foreign  steamer  to  carry  it.  He  did  not 
think  that  creditable  to  the  intelligence,  the  enterprise,  or  the  public 
spirit  of  the  country.  He  gave  an  illustration  of  the  injury  to  the 
American  trade  with  China,  caused  by  the  necessity  of  our  sending, 
some  years  since,  American  letters  destined  to  China  through  the  Eng 
lish  mails. 

Mr.  WELLS  inquired  whether  there  was  not  an  American  line  subsid 
ized  to  Kio  Janeiro,  and  one  to  Hong-Kong. 

Mr.  WETMORE  replied  that  that  was  so,  but  that  it  was  a  very  small 
affair,  and  that  when  the  commerce  of  the  nation  is  spoken  of  it  is  not 
South  American  commerce,  but  the  Atlantic  commerce  that  is  meant. 

Mr.  WELLS  inquired  whether  those  subsidies  did  not  operate  benefi 
cially  to  the  trade  between  this  country  and  South  America. 

Mr.  WETMORE  replied  that  they  did,  and  that  he  should  not  like  to 
live  to  see  the  day  when  they  would  be  withdrawn ;  but  that  was  only 


NAVIGATION   INTERESTS.  15 

one  point  in  the  common  system  of  commerce.  He  believed  that  a  mail 
line  on  the  ocean  could  not  be  supported  by  the  mere  carrying  of  mails 
and  passengers,  but  that  there  must  be  subsidies,  and  that  the  United 
States  government  could  well  afford  to  give  subsidies. 

Mr.  HOLMAN  inquired  whether  there  had  not  been  many  successful 
American  lines  prior  to  I860  that  were  not  subsidized. 

Mr.  WETMORE  replied  that  if  there  had  been  he  was  not  acquainted 
with  them.  The  Collins  line  had  had  a  subsidy  of  $385,000,  Mr.  Law's 
line  a  subsidy  of  $290,000,  and  Mr.  Aspinwall's  line  a  subsidy  of 
$199,000. 

Mr.  HOLMAN.  These  lines  were  in  the  direct  trade  with  Europe1? 

Mr.  WETMORE.  Yes,  sir. 

Mr.  HOLMAN.  Had  we  any  subsidized  line  to  South  America  prior  to 
I860? 

Mr.  WETMORE.  No,  sir ;  none  to  South  America,  nor  was  there  any 
subsidy  to  any  line  on  the  Pacific  Ocean.  I  think  that  the  granting  of 
a  subsidy  to  the  Pacific  Mail  Steamship  Company  was  a  beneficial  pub 
lic  measure.  L  think  that  that  company  has  committed  the  same  fault 
that  Mr.  Collins  committed,  in  making  its  ships  too  costly ;  in  other 
words,  I  think  that  there  has  been  a  want  of  economy  in  the  manage 
ment  of  the  concern. 

Mr.  N.  G.  HIOHBORN,  president  of  the  Maine  Ship-owners'  Association, 
next  addressed  the  committee.  He  said  that  the  ship-owners  of  Maine 
simply  asked  the  committee  to  recommend  such  measures  of  relief  as 
would  unfetter  that  interest,  and  bring  back  the  mercantile  marine  of 
the  country  to  its  former  position.  Up  to  1860  the  Maine  ship-builders 
constructed  sailing  ships  for  England  cheaper  than  the  English  could 
build  them,  but  under  the  disabilities  which  the  ship-building  interest 
was  now  laboring  under,  that  trade  had  languished.  The  representatives 
of  that  trade  asked  this  committee  to  recommend  to  Congress  the  passage 
of  such  laws  as  would  facilitate  their  efforts  in  building  up  commerce, 
and  such  as  are  granted  to  the  same  interests  in  other  commercial  nations. 
A  ship  now  costs  sixty  or  seventy  dollars  a  ton  built  in  this  country, 
whereas  in  the  Provinces  it  only  costs  forty-five  or  fifty  dollars  a  ton, 
and  the  two  ships  when  afloat  were  brought  into  competition  with  each 
other.  He  spoke  of  the  importance  of  having  a  merchant  marine  that 
could,  in  case  of  emergency,  be  used  for  the  defense  of  the  sea-coast,  and 
remarked  that  during  the  late  civil  war  a  single  British  gunboat  could 
have  destroyed  all  the  towns  upon  the  Penobscot  Bay  and  along  the 
coast  of  Maine,  whereas  if  the  government  had  authorized  it  to  be  done, 
the  people  of  Maiae  could  have  created  a  floating  defense  in  three  weeks 
that  would  have  defied  attack  from  abroad.  He  spoke  of  the  commander 
of  the  Kearsarge  having  been  educated  in  the  mercantile  marine  in  Bos 
ton,  and  said  that  though  an  army  might  be  extemporized  in  three  or 
four  months,  sailors  could  not  be  extemporized  in  that  way.  He  asked 
that  the  ship-building  trade  be  unfettered,  and  that  it  have  the  oppor 
tunity  to  use  iron  and  coal  and  wood  and  all  other  materials  as  cheaply 
as  it  can  procure  them,  and  there  would  then  be  no  fear  of  foreign  com 
petition,  and  there  would  be,  in  a  time  of  national  peril,  a  fleet  and  sail 
ors  ready  to  defend  the  country.  If  the  mercantile  marine  were  increased, 
the  ships  of  the  navy,  which  were  now  maintained  at  great  cost,  could 
be  brought  home,  and  the  commerce  of  the  country  would  be  better  pro 
tected  through  the  evidence  of  the  strength  and  power  and  civilization 
of  the  country,  manifested  by  the  fleets  of  the  American  mercantile 
marine.  He  understood  that  there  were  to-day  in  the  port  of  New  York 
some  sixty  barks,  forty-three  of  them  being  foreign  vessels,  and  only 


16  NAVIGATION    INTEBESTS. 

seventeen  American  vessels.  Those  vessels  were  principally  engaged  in 
carrying  western  grain  to  European  markets ;  and  he  showed  how  it  was 
to  the  interest  of  the  western  producer  to  have  his  grain  sent  to  the  mar 
ket  in  American  bottoms  rather  than  in  foreign  bottoms.  Valuable  as 
was  the  guano  of  the  Chincha  Islands,  the  carrying  of  that  guano  was 
of  more  value,  so  that  if  Peru  continued  to  own  those  islands,  and  if 
Americans  owned  all  the  shipping  engaged  in  the  transportation  of  the 
guano,  they  would  get  more  value  out  of  it  than  Peru  would.  The  East 
India  trade  was  now  being  carried  on  almost  entirely  by  foreigners.  He 
had  been  informed  recently  by  an  intelligent  American  master  that  in 
his  voyage  to  and  from  Yokohama  he  had  only  spoken  two  American 
vessels.  It  was  of  vast  importance  that  this  nation  should  have  as  much 
of  that  business  as  it  could  possibly  have.  As  to  the  inquiry  whether 
Americans  could  compete  with  foreigners  in  the  sailing  of  vessels,  he 
thought  that  they  could.  American  masters  and  seamen  wrere  superior 
to  foreigners.  He  related  an  instance  of  the  master  of  a  small  vessel 
of  six  hundred  or  seven  hundred  tons  which  was  lying  some  time  since 
at  Boston,  there  being  lying  on  the  other  side  of  the  wharf  at  the  same 
time  a  British  iron  ship  Avhich  was  understood  as  a  fourteen-knot  ship 
and  of  about  one  thousand  five  hundred  tons.  They  were  both  bound 
for  Melbourne.  The  merchants  of  Boston  were  invited  to  put  their 
cargoes  into  the  iron  ship,  because  she  would  be  at  Melbourne  before  the 
wooden  ship.  But  the  young  American  master  (who  had  come  to  him 
a  barefooted  boy  some  fifteen  or  eighteen  years  before)  said  that  he 
wrould  do  the  best  he  could  to  get  there  before  the  other,  and  the  result 
was  that-  he  delivered  his  cargo  seventeen  days  before  the  iron  ship 
arrived,  so  that  the  Boston  merchants  who  shipped  by  his  vessel  had 
saved  more  than  the  cost  of  the  freight  in  having  their  merchandise 
arrive  first  at  Melbourne.  The  same  principle  of  American  superiority 
held  true  in  the  line  of  ship-building.  As  to  the  question  of  labor,  labor 
was  now  in  excess  in  Europe,  and  the  ship-builders  there  did  not  use 
machinery  to  the  same  extent  as  the  ship-builders  here  did.  He  did  not 
like  to  be  over- sanguine,  but  he  believed  that  if  the  ship-builders  of 
Portland  could  not  learn  to  build  an  iron  ship  in  two  years  they  would 
luive  forgotten  their  skill.  They  only  wanted  two  or  three  years,  and 
they  would  then  take  care  of  the  ship-building  interest. 

Mr.  WELLS  inquired  how  Mr.  Hichboru  proposed  to  remedy  the  evil. 
Was  it  by  drawbacks? 

Mr.  HICHBOHN.  Yes,  sir;  we  want  a  drawback  on  the  articles  entering 
into  the  construction  of  ships.  He  did  not  want  to  antagonize  the  inter- 
ests.of  Pennsylvania  or  any  other  interest;  but  simply  asked  that  if  it 
took  one  thousand  dollars  to  pay  the  duty  on  iron  entering  into  the 
construction  of  ships,  that  duty  should  be  refunded  whether  the  iron 
was  procured  from  abroad  or  from  Pennsylvania.  He  spoke  of  the 
English  insurance  companies  combining  against  the  American  shipping 
interest,  by  requiring  a  premium  of  from  eight  to  ten  per  cent,  upon 
American  wooden  vessels  to  Calcutta,  and  requiring  only  two  and  a  half 
per  cent,  upon  English  iron  vessels.  Whereas  if  he  were  to  decide  which 
style  of  vessel  was  the  most  competent  to  take  a  cargo  to  Calcutta,  he 
would  say  that  the  wooden  vessel  was  at  least  as  competent  as  the  other. 
He  did  not  believe  that  the  time  had  come  for  the  end  of  wooden  ships, 
or  for  the  disappearance  of  sailing  ships.  Ships  of  wood  and  ships  of 
iron  would  both  be  continued,  propelled  by  steam  and  propelled  by 
sails.  The  ship-building  interest  of  Maine  called  upon  Congress  simply 
to  unfetter  it  in  the  matter  of  ship-building,  and  it  would  then  meet  ail 
the  demands  upon  it. 


NAVIGATION   INTERESTS.  17 

Mr.  HOLM  AN  inquired  what  the  present  condition  of  ship-building  in 
Maine  was? 

Mr.  HIGHBORN  replied  that  it  was  a  great  deal  depressed,  now,  owing 
to  the  fact  that  the  late  war  had  troubled  the  exchange  of  the  world,  and 
that  a  very  large  amount  of  shipping  had  been  transferred,  together  with 
the  fact  that  more  iron  vessels  were  being  built  now. 

Mr.  HOLMAN  inquired  whether  any  iron  vessels  had  yet  been  built  in 
the  Provinces'? 

Mr.  HIGHBORN  replied  that  very  few,  if  any,  had  been. 

The  CHAIRMAN  inquired  whether  the  yards  where  the  government  iron 
clad  vessels  had  been  built  were  prepared  to  build  mercantile  iron  vessels, 
and  whether  the  same  kind  of  work  and  machinery  would  answer  for 
both  classes  f 

Mr.  HIGHBORN  replied  that  at  all  events  the  same  kind  of  workmen 
would  answer,  and  that  the  difference  between  the  two  classes  was 
about  the  same  as  the  difference  between  the  building  of  steamships 
and  of  sailing-ships.  There  was  a  very  fine  yard  in  Wilmington,  Dela 
ware,  for  the  building  of  iron  vessels,  and  such  vessels  could  easily  be 
built  in  Maine,  if  they  could  have  the  iron  in  Maine  as  cheap  as  they 
had  it  on  the  Clyde.  American  mechanics  would  simply  need  the  time 
to  learn  how  to  rivet,  and  they  would  get  out  of  four  days'  labor  as 
much  as  they  would  get  out  of  six  days  on  the  Clyde.  He  would  say  to 
his  New  York  friends  that  both  the  ship-owning  and  ship-building  interests 
were  aiming  at  the  same  subject,  but  in  a  different  direction.  They  both 
wanted  cheap  ships,  and  the  ship-builders  of  this  country  would  supply 
them  if  Congress  would  only  unburden  the  ship-building  interest. 

Mr.  HOLMAN.  If  you  are  allowed  drawbacks  on  the  materials  entering 
into  the  construction  of  ships,  what  is  gained  in  a  national  point  of 
view  between  the  building,  of  ships  here  and  the  purchase  of  ships 
abroad  ?  Is  there  anything  else  gained  than  the  value  of  the  labor 
which  goes  into  the  construction  of  the  ship  ? 

Mr.  HIGHBORN.  Yes,  sir.  First  we  have  our  ship-yards  kept  intact 
in  case  of  the  emergency  of  war  with  a  foreign  country,  and  that  I  think 
a  very  essential  point.  Secondly,  we  have  our  sailors  trained  and  formed ; 
but  if  we  get  our  ships  abroad,  we  will  get  our  sailors  there  too,  and 
they  will  be  men  on  whom  we  would  have  no  claim,  and  who  would 
have  no  love  for  this  country  in  case  of  danger.  Perhaps  a  great  many 
of  the  masters  also  would  be  from  Europe,  and  they  would  be  men  who 
would  have  no  love  for  our  flag  and  no  disposition  to  spread  our  civili 
zation  and  sentiments. 

Mr.  HOLMAN.  Up  to  1860  had  the  ship-building  interest  of  Maine 
steadily  increased  from  the  time  it  commenced "? 

Mr.  HIGHBORN.  Yes,  sir ;  very  steadily'.  You  will  understand  me  to 
admit  that  it  had  its  intermittent  spells. 

Mr.  HOLMAN.  Was  it  greater  in  1859  and  I860  than  it  had  been  pre 
viously  ? 

Mr.  HIGHBORN.  I  do  not  think  that  it  was.  Our  great  ship-building 
years  were  1852, 1853, 1854.  They  were  wanting  ships  on  the  other  side, 
and  they  discovered  that  we  could  build  them  very  cheaply,  and  we  did 
build  for  ourselves  and  for  the  world. 

Mr.  HOLMAN.  Between  1848  and  1860  was  any  large  number  of  vessels 
built  in  Maine  on  contracts  with  foreign  capitalists  "I 

Mr.  HIGHBORN.  Not  extensively  so.  Our  people  constructed  ships 
and  sent  them  abroad,  some  in  ballast  and  some  writh  freight,  and 
there  they  were  sold.  There  were,  however,  some  built  on  contract; 

2NI 


18  NAVIGATION    INTERESTS. 

but  yet  we  did  not  get  acquainted  with  each  other  enough  to  go  into 
that  business  extensively. 

Mr.  HOLMAN.  What  is  the  present  condition  of  the  ship-building 
interest  in  Maine  f 

Mr.  HIGHBORN.  At  this  time  I  should  think  that  about  three-fifths 
of  our  ordinary  capital  is  at  work.  The  inquiry  may  be  made,  how  we 
can  do  so  much  work  as  that  under  the  circumstances  ?  The  answer  is 
that  those  towns  of  ours  which  have  been  used  for  ship-building  have 
that  business  as  a  specialty  and  have  nothing  else  that  they  can  do. 
The  people  who  have  followed  it  understand  it  and  understand  nothing 
else;  and  they  are  now  building  more  than  they  can  afford  to  do,  simply 
because  the  workmen  must  have  something  to  do,  and  they  must  have 
some  employment  themselves.  I  built  a  ship  this  year,  and  I  cannot  get 
85  per  cent,  of  what  it  cost.  The  ships  now  being  built  in  Maine  will 
not  sell  for  more  than  85  or  90  per  cent,  of  their  cost. 

The  CHAIRMAN.  What  are  the  rates  that  are  paid  now  to  mechanics 
in  ship-building? 

Mr.  HIGHBORN.  From  82  to  82  50  a  day  for  skilled  mechanics  and 
ship-carpenters.  I  have  not  paid  over  82  50,  and  I  have  had  a  great 
many  at  82. 

Mr.  CALKIN.  What  were  the  wages  before  the  war? 

Mr.  HIGHBORN.  I  am  quite  certain  that  in  1854  1  have  paid  83  50. 

The  CHAIRMAN.  Is  not  the  decrease  in  wages  in  consequence  of  the 
depression  in  business,  and  is  not  labor  as  low  in  that  branch  of  business 
as  it  was  before  the  war  ? 

Mr.  HIGHBORN.  Yes,  sir ;  we  have  two  applicants  for  labor  where  we 
can  only  employ  one. 

Mr.  CALKIN.  Do  you  know  anything  about  the  price  of  labor  of  machin 
ists,  as  to  how  it  rates  now  in  comparison  with  what  it  did  before  the 
war  f 

Mr.  HIGHBORN.  I  think  that  a  good  machinist  to-day  gets  from  83  50 
to  $4  a  day.  I  fell  in  this  morning  with  a  friend  of  mine  who  wanted 
some  stone-cutters  to  send  to  Maine,  and  the  man  with  whom  he  was 
talking  told  him  that  if  he  could  not  give  more  than  84  a  day  he  need  not 
seek  any  here,  because  they»were  getting  $4  50  a  day  here,  and  yet  our 
very  best  mechanics  in  ship-yards  can  only  get  $2  50  a  day. 

The  CHAIRMAN.  Then  I  understand  you  that  in  regard  to  labor  you 
can  build  ships  as  cheaply  now  in  currency  as  you  could  before  the  war 
in  gold  ? 

Mr.  HIGHBORN.  Certainly  we  can.  In  1S54  I  have  paid  83  50  in  gold 
to  the  same  men  that  I  am  now  paying  82  50  a  day  in  currency;  but 
that  was  in  an  emergency. 

The  CHAIRMAN.  How  did  the  average  rate  of  wages  then  compare 
with  the  present  rate  of  wages? 

Mr.-  HIGHBORN.  My  judgment  would  be  that  it  would  not  vary  twenty- 
five  cents  to-day  from  the  average  for  ten  years  before  the  war. 

Mr.  CALKIN  remarked  that  in  New  York  good  machinists  could  be  had 
for  82  a  day,  on  account  of  the  depression  in  business. 

Mr.  BUFFINTON  remarked  that  in  his  city  (Fall  River,  Massachusetts) 
good  machinists  received  -83  50  a  day,  and  that  there  was  plenty  of  work 
for  them. 

Mr.  CALKIN  said  that  Mr.  Roach  was  hiring  them  in  this  city  at  82  a 
day. 

Mr.  BUFFINTON  remarked  that  house-carpenters  in  Fall  River  received 
thirty-five  cents  an  hour,  and  that  common  dirt-diggers  in  the  street 
got  82  50  a  day. 


NAVIGATION  -  INTERESTS.  19 

Mr.  WELLS  inquired  from  Mr.  Hichborn  what  amount  per  ton  should 
be  allowed  for  duty  in  the  shape  of  drawbacks. 

Mr.  HIGHBORN  replied  that  the  estimate  was  about  $8  per  ton  upon 
wooden  vessels. 

Mr.  WELLS  inquired  what  it  would  be  on  iron  vessels. 

Mr.  HIGHBORN  replied  that  it  would  be  something  more — perhaps  $10 
or  $12  a  ton. 

The  CHAIRMAN.  Is  that  for  the  hull  alone  ? 

Mr.  HIGHBORN.  No,  sir;  it  is  for  the  hull  and  spars  and  rigging. 

Mr.  MORRELL.  Do  you  think  that  a  bounty  equal  to  $10  or  $12  a  ton 
on  iron  vessels,  and  $8  a  ton  on  wooden  vessels,  would  put  you  on  an 
equality  with  foreign  ship-builders  ? 

Mr.  HIGHBORN.  Yes,  sir ;  I  am  clearly  of  the  opinion  that  $8  a  ton 
would  do  it  on  wooden  vessels,  but  I  am  not  so  clear  as  to  iron  vessels. 

The  CHAIRMAN.  If  that  is  the  case,  why  is  there  so  much  difference 
between  the  cost  of  building  in  the  Provinces  and  in  Maine. 

Mr.  HIGHBORN.  The  ships  in  the  Provinces  are  not  so  well  constructed 
as  ours  are,  though  they  will  get  the  same  rate  as  we  do  through  English 
houses.  They  make  ships  entirely  of  spruce,  which  is  a  light  and  cheap 
quality  of  timber.  If  we  built  ours  of  spruce  we  could  build  them  at  $8 
or  $10  a  ton  less;  but  we  use  oak  and  hard  pine  and  hackmatack.  I 
had  a  vessel  of  five  hundred  tons  at  Boston,  and  on  the  other  side  of  her 
was  a  British  vessel  built  entirely  of  spruce  inside  and  outside.  My 
vessel  was  discharging  sugars  at  perhaps  $15  or  $20  expense  of  cooper 
age  on  her  cargo,  whereas  the  other  vessel  was  also  discharging  sugar 
at  $200  or  $300  expense  of  cooperage,  and  you  could  have  scraped  up 
cart-loads  of  sugar.  I  think  my  vessel  had  twice  the  strengtli  of  the 
other.  She  cost  $20  or  $30  more  per  ton. 

In  conclusion  Mr.  Hichboru  extended  an  invitation  to  the  committee 
to  visit  Portland  in  the  pursuance  of  its  investigation. 

Mr.  WETMORE  addressed  the  committee  in  defense  of  wooden  vessels 
as  against  iron  vessels.  He.  believed  that  if  a  careful  calculation  were 
made  it  would  be  found  that  from  two  to  three  iron-built  steamers  were 
wrecked  off  Newfoundland  for  the  one  wooden  steamer  that  was  wrecked 
there.  He  spoke  of  Admiral  Farragut  having  put  the  bow  of  the  wooden 
frigate  Hartford  dead  upon  the  iron  ram  in  Mobile  Harbor ;  and  about 
the  Star  of  the  West,  also  a  wooden  vessel,  placing  herself  alongside  of 
Fort  £>umter  and  bringing  back  her  flag  in  safety.  He  believed  that 
the  public  interest  of  the  country  required  that  its  commerce  should  be 
extended  wherever  it  could  be  done  without  infringing  upon  any  of  the 
great  principles  of  the  Constitution. 

The  committee  adjourned  till  to-morrow,  October  15. 

NEW  YORK,  October  15,  18G9. 

The  committee  met  at  10  o'clock  a.  m.  Present,  the  chairman,  and 
Messrs.  Morrell,  Holinan,  Calkin,  Buffinton,  and  Wells. 

Mr.  A.  C.  STIMERS  addressed  the  committee.  He  said  that  he  was  in 
terested  in  seeing  ships  built  and  run  under  the  American  flag,  which 
was  not  done  now  to  any  extent.  If  there  were  the  same  laws  on  the 
subject  of  shipping  in  this  country  as  there  were  in  other  countries  the 
result  would  be  the  same — the  growth  of  American  shipping  and  com 
merce.  He  understood  the  law  of  England  to  be,  that  all  materials 
entering  into  the  construction  of  a  ship  were  free  of  duty,  and  that  all 
stores  subsequently  put  into  her  were  also  free  of  duty.  With  such  a 
law  in  this  country  ships  could  be  built  and  run  in  competition  with  any 
nation.  Americans  were  superior  in  the  arts  of  ship-building  and  navi- 


20  NAVIGATION   INTERESTS. 

gation  to  the  French,  Germans,  and  Spaniards,  and  were  certainly  equal 
to  the  English.  Labor  cost  more  here,  but  it  was  also  worth  more,  in 
consequence  of  the  superior  intelligence  of  American  mechanics;  so  that 
if  the  duty  were  taken  oft'  materials  a  ship  would  not  cost  any  more  here 
than  in  England.  The  tax  should  come  off  iron  used  in  the  construction 
of  iron  ships. 

Mr.  MORRELL  remarked  that  there  was  not  much  tax  now  on  manufac 
tured  iron,  except  the  mercantile  tax. 

Mr.  STIMERS  replied  that  that  was  one  of  the  taxes  which  he  wished  to 
see  taken  off.  Ships  could  be  built  here  now  cheaper  than  was  generally 
supposed.  He  had  noticed  that  it  had  been  stated  yesterday  before  the 
committee  that  iron  steamers  could  not,  for  the  present,  be  built  here  as 
well  as  they  were  abroad.  He  did  not  agree  to  that.  During  the  late 
war  iron  steamers  had  been  built  for  the  government  under  his  general 
superintendence,  and  Mr.  Eowland,  now  present,  had  built  as  good  iron 
ships  as  ever  had  been  built. 

Mr.  MORRELL  inquired  whether  it  would  not  be  desirable  to  use  Ameri 
can  materials  in  the  construction  of  ships  when  they  could  be  got  as  cheap 
as  foreign  materials. 

Mr.  STIMERS  replied  that  American  iron  was  much  better  than  Eng 
lish  iron.  Shippers  and  shipping  merchants  always  paid  a  higher  price 
for  American  iron  than  for  English  iron. 

Mr.  MORRELL  inquired  whether  it  would  not  be  better  to  allow  a  draw 
back  on  iron  equivalent  to  the  duty,  so  as  to  allow  the  ship-builder  to 
use  American  iron. 

Mr.  STIMERS  replied  that  it  would,  and  that  ship-builders  would 
always  prefer  American  iron  on  account  of  its  superiority.  If  it  were 
made  free  it  would  come  to  that.  At  first  English  iron  might  be 
imported,  -but  builders  would  soon  come  round  to  American  iron. 
He  had  been  government  inspector  of  the  iron-clads,  which  had  been 
constructed  under  his  supervision,  in  various  parts  of  the  country. 
The  machinery  for  government  irou-clads  and  for  iron  mercantile  vessels 
was  just  the  same.  The  armature  of  the  iron-clads  would  be  heavier, 
but  the  construction  of  the  hulls  would  be  the  same.  Vessels  with  iron 
hulls  had  been  built  for  the  government  at  Portland,  Boston,  New 
York,  Jersey  City,  Greenpoint,  Chester,  Wilmington,  Baltimore,  Pitts- 
burg,  Cincinnati,  and  St.  Louis.  He  had  been  abroad,  and  had  seen 
nothing  there  to  surpass  the  American  iron  work.  The  iron  here  was 
better  than  is  made  in  Europe,  and,  therefore,  the  ships  were  better. 
These  iron-clads  had  been  to  sea,  and  had  pounded  on  sand-banks,  and 
not  a  hole  had  been  made  in  one  of  them.  Americans  had  not  to  learn 
how  to  build  iron  ships.  They  knew  to-day  how  to  do  it.  Give  them  a 
chance  and  they  would  build  fleets  of  them.  As  to  the  low  insurance 
on  English  iron  ships,  the  insurance  would  be  equally  low  on  iron  ships 
built  here.  The  latest  works  on  naval  architecture  were  obtained  and 
studied  in  this  country,  so  that  American  ship-builders  knew  all  that 
English  ship-builders  were  doing,  and  would  not  produce  work  inferior 
to  the  English  work. 

The  CHAIRMAN.  Do  I  understand  you  as  saying  that  the  difference  is 
simply  the  difference  in  duties  on  materials,  and  that  in  all  other  respects 
we  can  compete  with  foreign  ship-builders ? 

Mr.  STIMERS.  Yes,  sir ;  decidedly. 

The  CHAIRMAN.  How  would  you  overcome  the  difference  in  the  cost 
of  labor? 

Mr.  STIMERS.  The  labor  here  is  worth  more.  You  can  get  more  out 
of  an  American  mechanic  than  you  can  out  of  an  English  mechanic. 


NAVIGATION    INTERESTS.  21 

The  CHAIRMAN.  Is  there  more  machinery  used  here  ? 

Mr.  STIMERS.  No,  sir.  We  use  similar  machinery.  In  a  great  many 
cases  we  have  more  ingenious  arrangements  for  saving  labor;  but  more 
attention  has  been  paid  to  that  in  England  recently  than  used  to  be. 
In  1854,  when  I  was  in  England,  their  ships  were,  as  a  rule,  interior  to 
ours  in  New  York ;  but  now,  I  think,  they  are  rather  superior,  because 
we  have  had  so  much  discouragement,  and  have  been  running  down. 

The  CHAIRMAN.  Do  the  builders  of  wooden  ships  adapt  themselves 
readily  to  the  building  of  iron  ships  ? 

Mr.  STIMERS.  Yes,  sir.  The  change  is  very  simple.  My  opinion  is, 
that  when  iron  ships  come  to  be  made  here,  it  will  be  found  that  the 
builders  are  those  who  have  been  building  wooden  ships.  It  requires 
only  a  different  arrangement  of  materials,  which  is  very  easily  learned. 
In  tact,  the  art  of  ship-building  is  simple  if  you  understand  naval  archi 
tecture,  and  that  the  wooden  ship-builders  understand.  I  have  seen 
men  acting  as  common  laborers,  carrying,  iron  about,  and  have  seen 
them  in  six  months  afterwards  driving  rivets,  which  is  the  most  partic 
ular  thing.  If  you  have  the  head  man  right  the  labor  part  is  easily 
learned,  as  is  proved  by  the  building  of  alP  these  iron  ships  all  over  the 
country.  Of  course  the  knowledge  how  to  direct  all  to  be  done  requires 
a  labor  of  years ;  but,  after  the  plans  and  specifications  are  completed, 
the  other  parts  of  the  work  are  easy. 

Mr.  MORRELL.  I  suppose  you  would  apprehend  no  difficulty  in  sup 
plying  the  demand  for  all  the  iron  ships  needed  if  you  were  sure  of  the 
demand  after  the  ships  were  built  ? 

Mr.  STIMERS.  I  would  apprehend  no  difficulty  at  all. 

Mr.  MORRELL.  That  was  proved  by  the  ability  to  supply  the  demand 
during  the  war? 

Mr.  STIMERS.  Yes,  sir.  That  is  the  best  proof  di*  it.  Mr.  Fox,  the 
Assistant  Secretary  of  the  Navy,  complained  to  me  that  the  South  was 
building  ships  faster  than  we  were.  I  said,  "Yes  ;  but  when  the  ships 
meet,  what  becomes  of  the  southern  ships?  We  not  only  build  a 
number  of  ships,  but  we  build  good  ships.'7 

Mr.  MORRELL.  What  you  want  is  to  be  secured  possession  of  the 
American  market  for  ships  ? 

Mr.  STIMERS.  We  want  to  be  on  a  par  with  Englishmen.  That  is 
all. 

Mr.  MORRELL.  You  would  prefer  to  be  able  to  use  American  mate 
rials  ? 

Mr.  STIMERS.  Yes,  sir;  they  are  better.  American  iron  will  always 
command  a  better  price  than  English  iron.  It  is  worth  more. 

Mr.  HOLMAN.  The  vessels  built  by  the  government  during  the  war 
would  be  too  costly  for  commercial  purposes? 

Mr.  STIMERS.  Their  cost  was  not  on  account  of  their  being  govern 
ment  vessels,  but  on  account  of  the  disturbed  condition  of  labor  and 
iinances.  They  were  made  after  the  rules  of  building  iron  vessels. 

Mr.  HOLMAN.  But  a  capitalist  could  not  think  of  expending  anything 
near  the  amount  of  money  for  a  ship  for  commercial  business  that  the 
government  did  for  its  vessels. 

Mr.  STIMERS.  No ;  but  he  would  have  equally  good  vessels.  The 
difference  is  that  labor  now  is  cheaper,  and  materials  are  cheaper,  and 
the  finances  are  in  a  better  state.  The  machinery  for  building  iron 
ships  is  simple. 

Mr.  HOLMAN.  Your  experience  only  goes  to  the  question  of  the  prac 
ticability  of  building  such  vessels  in  this  country. 

Mr.  STIMERS.  I  know  the  cost  of  all  the  vessels  that  we  were  build- 


22  NAVIGATION    INTERESTS. 

ing  then.  I  saw  how  they  were  being  built.  I  saw  how  the  process 
was  carried  on,  and  how  it  was  carried  on  abroad,  The  processes  are 
quite  similar,  except  that  an  American  workman  will  always  get  off 
more  work. 

Mr.  HOLMAN.  I  understand  you  to  say  that,  with  relief  from  the  pay 
ment  of  taxes,  internal  and  external,  on  the  materials  entering  into  the 
construction  of  ships,  they  could  be  built  in  this  country,  of  wood  or  of 
iron,  so  as  to  compete  with  foreign  builders? 

Mr.  STIMEES.  Yes,  sir ;  but  then  I  also  want  the  inducement  of  letting 
all  stores  be  put  on  board  ship  free  of  duty.  That  would  be  an  addi 
tional  inducement  to  build  ships,  because  it  would  afford  profits. 

Mr.  HOLMAN.  Is  that  the  practice  of  all  commercial  nations  ? 

Mr.  STIMERS.  It  is  the  practice  of  England.  A  passenger  on  board 
a  Cunard  steamer  gets  his  bottle  of  champagne  for  three  shillings ; 
whereas  on  an  American  ship  he  has  to  pay  three  or  four  dollars  for  it. 

Mr.  HOLMAN.  Does  that  policy  of  furnishing  goods  from  bonded 
warehouses  extend  any  further  than  Great  Britain? 

Mr.  STIMEES.  I  do  not  know.  I  notice,  however,  that  other  conti 
nental  nations  are  adopting'the  liberal  policy  of  England  in  reference 
to  ships.  Ships  that  are  built  in  England  are  imported  into  France, 
Germany,  and  other  countries,  and  enter  into  navigation  under  their 
laws. 

Mr.  HOLMAN.  That  is  the  policy  of  all  the  commercial  continental 
powers. 

Mr.  STIMERS.  I  understand  that  it  is. 

Mr.  HOLMAN.  There  is  no  government  except  ours  that  prohibits  the 
sailing  under  its  register  and  flag  of  vessels  built  in  foreign  countries. 

Mr.  STIMERS.  I  do  not  know  of  any.  . 

Mr.  HOLMAN.  Suppose  that  ship-builders  were  allowed  a  drawback 
of  duties,  internal  and  external,  on  all  materials  entering  into  the  con 
struction  of  ships,  what  would  be  the  gain  to  the  country  between  that 
policy  and  the  policy  of  letting  our  merchants  buy  their  ships  abroad  ? 

Mr.  STIMERS.  I  think  our  ships  would  pay  better  profit  than  English 
ships  would.  My  opinion  is  that  the  American  ship  will  earn  money 
where  the  English  ship  will  be  simply  paying  expenses.  There  are 
technical  reasons  why  I  think  that  is  so.  The  vessel  that  is  constructed 
here  is  owned  here,  and  our  people  make  the  profit  resulting  from  run 
ning  her. 

Mr.  HOLMAN.  Would  not  that  result  follow  if  the  ship  were  built 
abroad  and  owned  here  ? 

Mr.  STIMERS.  Yes,  except  that  if  we  build  our  own  vessels  we  will 
make  more  money  than  by  buying  foreign  vessels.  Ours  are  more  profit 
able  vessels  to  run.  We  have  always  led  all  other  nations  in  the 
construction  of  ships,  both  naval  and  mercantile.  The  French  vessels 
used  to  be  superior  to  the  English,  but  the  French  had  not  the  aptitude 
lor  going  to  sea  that  the  English  had,  and  they  were  consequently 
driven  from  the  sea  by  the  English. 

Mr.  MOREELL.  Is  there  not  another  and  a  higher  reason  for  building 
our  own  ships — and  that  is  that  we  may  be  able  to  supply  our  navy  in 
time  of  need  J? 

Mr.  STIMEES.  Yes,  that  is  a  further  consideration  which  should  be 
kept  in  view  by  statesmen.  During  the  war  we  derived  great  advan 
tage  from  the  tact  that  our  people  were  able  to  construct  ships. 

Mr.  HOLMAN.  Vessels  purchased  abroad  by  Americans  would  be 
likely  to  be  manned  by  American  citizens. 

Mr.  STIMEES.  If  you  buy  a  ship  abroad  you  would  be  very  apt  to  put 


NAVIGATION   INTERESTS.  23 

people  aboard  of  her  there.  Ships  now  are  owned  here,  as  nearly  as 
they  can  be  owned,  running  under  the  American  flag,  that  are  com 
manded  and  manned  by  Englishmen. 

Mr.  HOLMAN.  Sailors  are  admitted  to  vessels  without  regard  to  na 
tionality. 

Mr.  STIMERS.  Yes,  sir.  I  think  it  has  been  always  so.  I  never  heard 
of  any  restrictions  on  that  account  either  as  to  officers  or  crews. 

The  Cn AIRMAN.  I  believe  that  a  certain  proportion  of  the  crew  has 
to  be  American. 

Mr.  STIMERS.  -Perhaps  so.    I  do  not  know  about  that. 

Mr.  HOLMAN.  Then  your  view  of  the  matter  is,  that  the  advantage  to 
be  gained  by  the  United  States  from  relieving  ship-builders  of  the  duty 
on  materials  is  that  resulting  to  labor  from  the  construction  of  the 
vessel  here,  and  that  of  keeping  up  our  ship-yards  with  a  view  to  any 
national  exigency  that  may  occur,  and  also  the  fact  that  you  think  our 
ships  are  better  than  foreign-built  ships. 

Mr.  STIMERS.  Yes.    These  are  the  advantages  that  I  had  in  my  mind. 

Mr.  HOLMAN.  Taking  the  present  condition  of  our  commerce  into  con 
sideration,  would  the  advantages  to  labor  resulting  from  the  construction 
of  vessels  here  countervalue  the  advantages  of  allowing  our  merchants 
to  buy  their  ships  abroad  and  have  them  registered  here,  thus  stimulat 
ing  our  commerce  immediately  £  In  other  words,  which  would  employ 
the  largest  number  of  persons  ? 

Mr.  STIMERS.  I  suppose  that  the  building  of  ships  here  would.  I 
should  like  to  see  the  whole  thing  left  free — to  see  the  duties  taken  off 
materials  entering  into  the  construction  of  ships,  and  then  to  let  our 
merchants  go  and  buy  ships  abroad  if  they  chose.  I  think  that  very 
few  would  buy  their  ships  abroad. 

Mr.  HOLXAN.  And  American  commerce  and  ship-building  would  be 
promoted  to  a  large  extent? 

Mr.  STIMERS.  Yes,  sir.  In  the  first  year,  no  doubt,  there  would  be 
quite  a  number  of  ships  bought  abroad ;  but  merchants  would  soon  find 
out  that  they  could  do  better  here.  The  comparison  would  be  in  favor  of 
our  ships.  And  after  the  first  year,  I  think  there  would  be  few  ships 
purchased  abroad  by  our  ship-owners. 

Mr.  HOLMAN.  Then  you  think  that  the  true  end  would  be  obtained  by 
allowing  foreign-built  vessels  purchased  by  American  citizens  to  obtain 
American  registers,  and,  at  the  same  time,  by  removing  all  duties  from 
the  materials  entering  into  the  construction  of  ships  here. 

Mr.  STIMEES.  Yes,  sir. 

Mr.  HOLMAN.  You  think  that  both  these  plans  would  improve  our 
commerce  if 

Mr.  STIMERS.  Yes,  sir. 

Mr.  HOLMAN.  Without  any  injury  to  the  ship-builder  ? 

Mr.  STIMEES.  Yes,  sir.  I  do  not  think  he  would  suffer  at  all.  I  am 
interested  in  it  myself,  because  I  am  a  ship  engineer. 

Mr.  HOLMAN.  Would  you  make  any  distinction  between  vessels  built 
abroad  and  those  built  at  home  as  to  their  right  to  engage  in  the  coast 
wise  trade  $ 

Mr.  STIMERS.  I  would  throw  the  coastwise  trade  open  to  all  ships 
under  the  American  flag,  wherever  they  were  built. 

Mr.  HICIIBORN,  of  Maine,  remarked  that  it  seemed  to  have  been  the 
sentiment  of  those  who  had  appeared  before  the  committee  yesterday 
that,  even  with  a  remission  of  duties,  iron  ships  could  not  be  constructed 
here  at  once  to  compete  with  those  built  on  the  Clyde  or  the  Tyne,  but 


24  NAVIGATION    INTERESTS. 

that  it  would  require  two  or  three  years  for  the  American  iron  ship 
builders  to  get  ready. 

Mr.  STIMERS  replied  that  Americans  could  proceed  at  once  in  the  con 
struction  of  iron  ships.  There  were  several  establishments  ready  now 
to  go  right  ahead  and  build  iron  ships,  and  large  numbers  of  such  ships 
could  be  supplied  in  the  first  year.  He  thought  that  they  could  be  pro 
duced  here  quicker  than  they  could  be  procured  abroad. 

Mr.  MORRELL.  Do  you  think  that  if  you  had  a  demand  for  iron  ships 
at  this  time  you  would  be  able  to  build  them  of  American  materials  as 
quickly  as  you  could  by  importing  the  materials ? 

Mr.  STIMERS.  Yes,  sir.  We  have  rolling  mills  that  are  prepared  to 
roll  such  iron  if  they  only  get  the  order. 

Mr.  MORRELL.  You  found  no  trouble  during  the  war  in  supplying  the 
demand  after  a  few  months  ? 

Mr.  STIMERS.  No,  sir.  The  mills  sprung  up  to  meet  the  demand.  I 
superintended  the  construction  of  our  first  iron  vessel,  the  little  Monitor, 
and  we  got  the  iron  from  Baltimore  for  the  armature.  It  was  supposed 
at  that  time  that  it  could  not  be  obtained  anywhere  else ;  but  just  as 
soon  as  more  vessels  were  wanted  the  whole  country  was  ready  to  sup 
ply  the  article. 

Mr.  MORRELL.  If  the  duty  on  iron  were  remitted  and  there  were  no 
provision  made  for  the  use  of  American  iron  on  our  ships,  do  you  sup 
pose  that  those  American  mills  could  live  ?  Do  you  not  suppose  that 
all  the  American  vessels  would  be  built  of  foreign  materials  ? 

Mr.  STIMERS.  It  is  impossible  to  say  how  cheaply  the  American  mills 
could  produce  the  article.  My  opinion  is  that  they  would  soon  come  to 
the  point  of  producing  it  as  cheaply  as  it  could  be  imported. 

Mr.  HOLMAN.  Were  all  those  monitors  and  iron  vessels  built  of 
American  iron  ? 

Mr.  STIMERS.  Yes,  sir.  All  of  their  iron  was  rolled  here.  There 
never  was  a  pound  of  English  iron  imported  for  the  purpose. 

Mr.  MORRELL.  You  experienced  no  trouble  in  getting  anything  you 
wanted  of  American  manufacture  when  you  were  able  to  give  the  order? 

Mr.  STIMERS.  No,  sir ;  not  at  all.  This  country  can  produce  anything 
required  for  ships.  There  was  competition  throughout  for  the  supplying 
of  these  things. 

Mr.  WELLS.  What  material  used  in  the  construction  of  a  ship  is  not 
produced  in  this  country  ? 

Mr.  STIMERS.  I  believe  we  import  Manila  hemp ;  but  that  is  a  very 
small  matter,  particularly  in  steamships.  Most  of  the  ships  built  here 
after  will  be,  I  think,  iron  steamers.  That  is  the  tendency. 

Mr.  WELLS.  Then  the  drawback  would  be  principally  011  iron  and  on 
the  stores  that  go  into  the  ship  after  its  construction? 

Mr.  STIMERS.  Yes,  sir. 

Mr.  HOLMAN.  Were  any  new  navy  yards  established  during  the  war? 

Mr.  STIMERS.  No,  sir.  All  those  vessels -were  built  in  private  yards. 
There  were  naval  stations  established,  but  not  what  we  understand  as 
navy  yards.  Those  at  Cincinnati  and  St.  Louis  and  other  points  were 
just  improvised  ship-yards.  Mr.  Rowland,  who  built  the  first  monitor 
for  us,  had  already  a  ship-yard. 

Mr.  WELLS.  The  iron  vessels  at  St.  Louis  were  built  on  the  open  levee? 

Mr.  STIMERS.  Yes,  sir. 

Mr.  HOLMAN.  All  that  was  needed  to  secure  the  prompt  construction 
of  vessels  for  the  government  was  to  have  the  skilled  workmen  i 

Mr.  STIMERS.  Yes,  sir.  The  only  difficulty  about  skilled  workmen 
was  the  needs  of  the  army.  Many  of  them  were  drafted  into  the  army, 


NAVIGATION   INTERESTS.  25 

and  employers  had  to  took  aromid  and  make  them  out  of  common  labor 
ers,  which  they  soon  did.  At  present  we  could  not  have  any  such  diffi 
culty. 

Mr.  HOLMAN.  Any  man  skilled  in  iron- work  can  readily  be  trained  in 
that  kind  of  work  f 

Mr.  STIMERS.  Certainly,  sir.  The  head  man,  of  course,  wants  to 
understand  naval  architecture.  We  have  men  enough  in  the  country  to 
build  hundreds  of  iron  ships  very  soon. 

The  CIIAIRMAN.  Were  not  a  majority  of  the  iron-clad  government 
vessels  built  at  private  yards'? 

Mr.  STIMERS.  Yes,  sir;  all  having  iron  hulls  were.  We  did  not 
attempt  iron  hulls  at  the  navy  yards.  Mr.  Fox  asked  me  how  long  it 
would  take  to  build  them  at  the  navy  yards.  I  told  him  that  it  would 
probably  take  a  couple  of  years ;  and  that,  therefore,  we  must  build  them 
at  private  yards.  A  few  iron-plated  vessels,  with  wooden  hulls,  were 
built  in  the  navy  yards:  but  the  iron  vessels  proper  were  built  in  private 
yards.  I  went  into  a  ship-yard  on  the  river  Clyde.  It  had  been  a 
meadow  eighteen  months  before,  and  yet  they  had  already  launched 
fourteen  ships  from  it;-  so  that  you  see  it  does  not  take  long  to  establish 
an  iron  ship-building  yard. 

Mr.  HOLMAN.  In  case  of  emergency,  would  there  be  any  difficulty  in 
constructing  any  number  of  vessels  that  might  be  required,  with  a  rea 
sonable  degree  of  promptness  I 

Mr.  STIMERS.  No,  sir.  I  really  think  we  could  get  the  vessels  more 
promptly  than  by  going  abroad  for  them. 

Mr.  CALKIN.  Are  there  not  concerns  in  Wilmington,  New  York,  and 
Boston,  that  would  be  prepared  at  once  to  build  iron  steamers  ? 

Mr.  STIMERS.  Yes,  sir.  At  Wilmington,  Delaware,  Chester,  Pennsyl 
vania,  Philadelphia,  New  York,  and  Boston,  they  can  go  right  to  work 
at  once,  as  soon  as  they  get  contracts ;  you  would  see  the  riveters  at 
work  in  a  week. 

Mr.  MORRELL.  The  difficulty  is  the  want  of  demand,  rather  than  of 
means  to  supply  it  ? 

Mr.  STIMERS.  The  want  of  demand  is  the  entire  difficulty.  That  is 
why  I  want  to  see  ship-building  encouraged  here  by  the  withdrawal  of 
duties. 

Mr.  CALKIN.  Do  you  not  think  that  the  talent  of  this  country  in  the 
way  of  building  iron  ships  is  equal  to  that  of  Europe? 

Mr.  STIMERS.  Yes,  sir.  We  build  better  ships  than  they  build  abroad  5 
ships  that  earn  more  money.  I  refer  to  iron  ships,  as  well  as  wooden 
ones. 

Mr.  T.  F.  ROWLAND  next  addressed  the  committee.  He  said  that  he 
was  the  proprietor  of  the  Continental  ship-yard  at  Greenpoint,  Brook 
lyn.  That  yard  was  established  in  1859 — about  two  years  before  the 
war  broke  out.  Previous  to  the  war  he  had  only  built  some  three  or 
four  iron  vessels  there — coasters  running  between  New  Orleans  and  Mo 
bile,  and  one  or  two  for  the  Sound  trade.  After  the  breaking  out  of  the 
war  Captain  Ericsson  took  a  contract  to  build  what  was  afterward 
called  the  Monitor,  and  as  he  (Mr.  Rowland)  was  the  only  man  in  the 
business  in  New  York,  Captain  Ericsson  applied  to  him  to  do  the  work. 
That  vessel  was  built  in  just  one  hundred  and  one  days  from  the  day 
she  was  started.  She  happened  to  be  successful,  and "  the  government 
wanted  some  more  of  the  same  kind,  and  Captain  Ericsson  got  a  con 
tract  to  build  six,  somewhat  larger.  There  were  only  twelve  months 
allowed  to  build  the  whole  six.  Captain  Ericsson  sent  for  him,  and  he 
told  Captain  Ericsson  that  he  would  undertake  three  of  them.  He  sub- 


26  NAVIGATION   INTERESTS. 

sequently  became  sick,  and  his  foreman  called  to  see  him,  and  proposed 
that  if  lie  should  get  ten  per  cent,  of  the  profits  he  would  stay;  otherwise 
he  would  strike.  He  (Mr.  Eowland)  told  him  to  strike  and  to  clear  out; 
and  he  cleared  out  the  whole  tribe  of  workmen  who  had  been  with  him 
two  or  three  years.  After  clearing  out  the  whole  party  of  experts,  he 
went  to  work  and  laid  the  keels  of  the  Passaic,  Moutauk,  and  Catskill. 
]Sot  a  man  struck  a  blow  upon  them  who  had  ever  struck  a  blow  on  an 
iron  ship  before.  He  built  those  vessels  with  house-builders,  molders, 
and  all  kinds  of  mechanics.  There  were  no  ship-carpenters  among  them. 
Mr.  Badger,  a  house-carpenter  in  New  York,  helped  him  a  good  deal. 
Mr.  Badger's  business  had  given  out,  and  he  had  a  good  number  of  Ger 
man  mechanics — good  fellows — with  whom  the  work  was  done  and  the 
vessels  got  out.  The  other  three,  which  were  built  in  Wilmington,  Del 
aware,  came  out  after  his.  After  that  the  government  had  given  orders 
for  two  large  monitors,  the  Dictator  and  Puritan,  and  he  (Mr.  Rowland) 
took  the  Puritan.  He  thought  he  would  send  to  England  for  some  work 
men,  and  he  got  eleven  of  them  from  the  Tyne,  agreeing  to  pay  them 
two  dollars  a  day.  These  men  staid  but  three  weeks  with  him.  They  were 
not  worth  their  two  dollars  a,  day,  and  they  cleared  out.  He  was  better 
without  them  than  with  them.  He  built  the  Puritan  and  launched  her, 
and  he  believed  that  there  never  was  a  piece  of  iron  work  done  to  excel 
the  Avork  on  her.  He  did  not  know  the  cause  of  the  present  decline  in 
the  shipping  interests.  During  the  last  year,  at  least  once  a  week,  he 
had  made  propositions  to  build  iron  sailing  vessels  at  not  exceeding 
ten  per  cent,  in  currency  over  their  cost  on  the  other  side;  but 
people  did  not  want  ships.  Mr.  Low  had  sent  for  him,  and  he  had  made 
drawings  and  a  contract  to  build  a  ship  for  the  China  trade,  but  just 
then  the  recent  troubles  in  Wall  street  occurred,  and  consequently  the 
ship  had  not  been  built.  He  had  offered  to  build  her  as  cheap  as  she 
could  be  got  in  England.  He  had  seen  by  the  paper  to-day  that  Mr. 
Low  had  stated  before  the  committee  yesterday  that  they  did  not  know 
how  to  build  iron  ships  in  this  country.  He  himself,  however,  had  built 
a  good  many.  The  Americans  were  a  peculiar  people,  but  the  English 
were  still  more  peculiar.  The  English  never  learned  anything  with 
out  immediately  running  to  some  printing  office  and  publishing  it  all. 
The  Yankee  never  did  that ;  but  he  knew  enough  to  read  up  and  keep 
posted.  The  Yankee  thus  had  the  benefit  of  his  own  experience  and  of 
the  Englishman's  too,  and  had  sense  enough  to  pick  out  the  good  and 
to  throw  away  the  bad.  The  iron  planing  machine,  which  had  long  been 
in  use  here,  had  only  recently  been  adopted  by  the  English ;  and  that 
was  one  reasoli  why  they  were  doing  better  work.  But  yet  the  English 
could  not  build  a  ship  much  cheaper  than  Americans  could.  Iron  sailing 
ships  cost  about  £10  sterling  per  ton,  and  steamers  from  £22  to  £24. 

It  was  in  England  as  here.  One  could  get  a  vessel  for  almost  any 
price.  The  idea  of  using  English  iron  was  all  moonshine.  Ships  could 
not  be  built  in  this  country  of  English  iron,  but  the  American  iron 
would  have  to  be  rolled  to  order,  for  by  the  time  that  iron  could  be 
procured  from  England  rolled  to  order,  the  Yankee  would  want  his  ship 
launched.  During  the  war  the  Passaic  had  come  into  Isew  York  want 
ing  some  repairs  done.  He  had  gone  into  Mr.  Wells's  store  with  an  order 
for  about  thirty  plates  of  iron,  saying  that  it  was  life  and  death  to  have 
them ;  that  the  vessel  was  in  the  dock,  and  that  they  must  be  got.  Mr. 
Wells  hadn't  them  in  the  store,  but  said  he  would  have  them  rolled. 
This  was  about  eight  o'clock  in  the  morning,  and  the  same  evening  a 
cart  drove  into  his  yard  with  one  load  of  that  iron,  which  had  been  rolled 
in  Jersey  City,  sheared  and  delivered  at  Greeiipomt,  and  the  rest  of  it 


NAVIGATION   INTERESTS.  27 

came  the  next  day.  If  it  had  been  necessary  to  send  to  England  for  a 
lot  of  iron,  he  would  have  had  to  wait  a  long  while  to  get  it,  and  price 
was  no  object  in  such  a  case  as  that.  All  that  he  had  ever  seen  of  Eng 
lish  iron  was  perhaps  thirty  or  forty  per  cent,  poorer  than  American 
iron  in  regard  to  its  ductility  and  strength. 

Mr.  MORRELL.  Do  you  not  think  that  those  English  ships  that  are 
built  so  cheaply  are  built  of  iron  that  is  vastly  inferior  to  American 
iron,  and  that  it  is  an  unfair  competition  for  American  builders  to  be 
brought  into  contact  with  them  ? 

Mr.  ROWLAND.  The  kind  of  iron  that  I  have  seen  from  England  is 
mighty  poor  stuff. 

The  CHAIRMAN.  Do  not  the  insurance  companies  in  Europe  discrimi 
nate  against  a  poor  quality  of  iron  in  ships  ? 

Mr.  ROWLAND.  No,  sir.  According  to  Lloyds'  regulations  a  certain 
weight  of  iron  per  ton  measurement  must  be  put  into  a  ship.  That  iron 
must  have  a  strength  of  twenty  thousand  pounds  to  the  square  inch, 
and  there  is  no  difference  made.  If  we  put  in  to  .our  ships  iron  of  one 
hundred  thousand  pounds  to  the  square  inch,  we  would  have  to  put  in 
the  same  weight  of  iron  as  if  it  was  only  twenty  thousand  pounds  to 
the  square  inch.  Until  that  regulation  of  Lloyds'  is  changed,  I  do  not 
see  how  we  can  enter  into  competition  with  the  English.  I  will  make  a 
contract  to  build  an  iron  ship  at  less  than  they  can  produce  it  in  Eng 
land,  if  regard  is  had  to  the  strength  of  the  iron,  not  to  its  weight. 

The  CHAIRMAN.  You  would  use  a  lighter  quality  of  iron  and  get 
the  same  strength  ? 

Mr.  ROWLAND.  Yes,  sir.  I  would  use  not  more  than  five-eighths  the 
weight  of  iron  and  get  greater  strength.  I  do  not  propose  to  build  a 
ship  out  of  English  iron.  I  would  rather  leave  the  business.  I  could 
not  do  it. 

The  CHAIRMAN.  Your  experience  in  iron  ship-building  was  during 
the  war,  when  you  were  obliged  to  have  everything  at  once,  without 
any  regard  to  its  cost.  The  only  question  is  whether  you  could  afford 
to  pursue  that  mode  of  doing  business  in  regard -to  mercantile  ships  ? 
,  Mr.  ROWLAND.  You  could  not  build  ships  of  any  magnitude  without 
ordering  the  iron  rolled  at  the  mill  and  cut  to  shape.  You  cannot 
afford  to  have  it  rolled  except  on  pattern,  because  if  you  had  afterwards 
to  cut  it  into  shape  you  could  not  stand  the  waste. 

The  CHAIRMAN.  Would  not  the  iron  be  all  of  a  certain  shape,  and 
if  the  business  were  pursued  would  not  the  result  be  to  come  down  to 
those  certain  shapes  and  certain  sizes,  and  to  have  them  imported  and 
kept  on  hand  ? 

Mr.  KOWLAND.  ISTo,  sir,  I  think  not. 

The  CHAIRMAN.  If  you  were  building  several  thousand-ton  ships, 
would  you  not  necessarily  build  them  on  the  same  model,  so  as  to  have  the 
patterns  and  sizes  of  plates  alike ;  in  other  words,  would  you  not  follow 
the  mode  of  building  them  all  pretty  much  in  the  same  way  '1 

Mr.  ROWLAND.  I  have  been  an  engineer  for  about  twenty- two  years. 
It  is  about  that  length  of  time  since  I  first  started  in  the  building  of 
locomotive  and  marine  engines.  Our  marine  engines  that  go  to  sea, 
and  that  all  look  alike  to  the  eye  of  a  layman,  do  nevertheless  differ 
from  each  other.  I  do  not  recollect  making  two  engines  that  were  pre 
cisely  alike.  We  are  always  making  alterations  and  what  we  call  im 
provements,  though  they  are  only  sometimes  improvements.  I  never 
built  two  engines  precisely  alike.  I  built  three  ships  for  the  govern 
ment,  all  apparently  alike;  but  if  you  came  to  measure  them,  you  would 
find  them  entirely  different. 


28  NAVIGATION    INTERESTS. 

The  CHAIRMAN.  Do  I  understand  you  that  the  plates  are  necessarily 
cut  to  shape  ? 

Mr.  ROWLAND.  They  are  cut  to  shape.  We  generally  allow  a  half 
inch  for  the  edges  and  use  the  shears. 

Mr.  MOREELL.  You  order  the  plates  to  be  cut  to  pattern  ? 

Mr.  ROWLAND.  Yes,  sir. 

Mr.  MORRELL.  And  the  rolling  mills  cut  the  plates  to  pattern  ? 

Mr.  ROWLAND.  Yes;  and  a  half  inch  is  allowed  for  irregularity  in 
the  shearing.  That  makes  a  waste  of  a  quarter  of  one  per  cent., 
whereas  if  you  order  plates  promiscuously,  there  will  be  a  waste  of  five 
per  cent,  and  the  labor  of  cutting,  and  no  ship-builder  could  stand  any 
thing  like  that. 

The  CHAIRMAN.  What,  in  your  opinion,  is  the  remedy  for  the  pres 
ent  depressed  condition  of  the  ship -building  interest  ? 

Mr.  ROWLAND.  That  is  a  pretty  hard  question  to  answer. 

The  CHAIRMAN.  What  would  be  requisite  in  order  to  revive  the  ship 
building  interest  ? 

Mr.  ROWLAND.  Taking  the  duty  on0  iron  might  help  us  some.  It 
would  make  those  Pennsylvania  people  come  down  in  their  prices,  and 
then,  instead  of  building  ships  at  the  same  prices  or  at  greater  prices 
than  they  are  built  in  England,  I  think  we  could  build  them  ten  per 
cent,  cheaper.  It  looks  to  me  like  a  lack  of  enterprise  among  our  mer 
chants.  When  an  Englishman  makes  three  or  four  per  cent,  on  the 
capital  invested,  he  is  quite  well  satisfied;  but  our  people  do  not  look  at 
it  in  that  light. 

The  CHAIRMAN.  Do  you  not  know  that  Americans  are  negotiating 
to  buy  ships  in  England,  and  are  sailing  them  under  foreign  flags,  in 
consequence  of  their  inability  to  procure  vessels  here  at  cheaper  rates  $ 

Mr.  ROWLAND.  No,  sir  ;  I  do  not  know  that. 

Mr.  BUFFINTON.  Do  I  understand  you  to  say  that  you  are  prepared 
to-day  to  build  an  iron  ship  as  cheaply  as  it  can  be  built  in  Europe? 

Mr.  ROWLAND.  I  said  I  would  do  it  at  a  diiference  of  not  exceeding 
ten  per  cent,  over  the  cost  in  England.  On  a  large  specification  I  would 
build  a  ship  for  less  money.  I  do  not  want  anything  but  the  contract. 

Mr.  BUFFINTON.  You  would  build  a  ship  as  good,  in  your  opinion, 
as  it  could  be  obtained  abroad  for  the  same  money  ? 

Mr.  ROWLAND.  Yes,  sir. 

Mr.  WELLS.  But  under  Lloyd's  regulations  it  would  cost  you  ten  per 
cent,  more  S 

Mr.  ROWLAND.  Yes,  sir. 

Mr.  BUFFINTON.  Then  if  that  statement  is  correct,  it  is  not  the  duty 
on  the  iron  and  on  the  materials  that  go  into  ships  that  causes  the 
depression  in  the  trade? 

Mr.  ROWLAND.  I  think  not,  myself;  but  I  want  the  duty  taken  off 
iron,  so  as  that  we  can  build  ships  under  Lloyds7  rule  and  build  them  as 
they  are  built  in  England. 

Mr.  MORRELL.  Would  you  not  consider  it  rather  a  disaster  than  an 
advantage  if  by  legislation  you  compelled  the  iron  masters  of  this  coun 
try,  in  order  to  compete  with  English  manufacturers,  to  reduce  the 
standard  of  their  quality  of  iron  1 

Mr.  ROWLAND.  1  do  not  want  it  reduced  any  more  than  it  is  now. 
Our  American  iron  is  poor  enough  now,  to  say  nothing  of  the  English 
iron.  The  trouble  is  that  we  do  not  always  get  the  Pennsylvania  iron 
when  we  think  we  do.  At  the  present  time  there  are  four  thousand  tons 
of  scrap  iron  in  port  here,  which  will  be  rolled  and  sold  for  American 
plate  iron. 


NAVIGATION   INTERESTS.  29 

Mr.  MORRELL.  If  you  want  plates  rolled  to  specification,  you  must 
have  American  bloom  iron,  and  can  afford  to  pay  more  for  it ;  but  if 
you  compel  American  iron  masters  to  sell  their  iron  as  cheaply  as  for 
eign  iron  is  sold,  you  will  break  down  the  business  I 

Mr.  ROWLAND.  I  do  not  know.  I  have  got  an  idea  that  iron  masters 
like  to  make  a  great  deal  of  money. 

Mr.  MORRELL.  There  is  probably  some  money  made  in  the  business ; 
but  there  are  rolling  mills  that  are  standing  idle  now  for  want  of  orders. 
The  best  mill  in  the  United  States  to-day,  and  the  one  most  able  to  make 
those-  plates,  is  comparatively  idle,  has  not  made  money,  and  has  not 
declared  a  dividend.  I  refer  to  Abbott's,  at  Baltimore.  We  want  to  save 
this  work  to  our  own  country.  We  do  not  want  extreme  profits,  but 
simply  to  be  able  to  earn  interest  on  the  capital  invested. 

Mr.  ROWLAND.  It  seems  to  me  that  if  we  were  to  go  abroad  to  buy 
our  vessels,  and  if  English  vessels  were  allowed  to  come  here  on  the 
same  basis  as  American  vessels,  American  capitalists  would  cease  to  be 
interested  in  commerce  on  the  seas,  and  would  put  their  money  in  rail 
roads,  so  that  we  would  lose  our  coasting  trade  also.  If  that  kind  of 
policy  is  pursued  it  seems  to  me  that  we  might  as  well  give  up  our  ship 
yards  altogether.  The  ship-yards  and  ship  mechanics  of  the  country 
must  be  taken  care  of.  History  says  that  the  time  has  been  when  the 
English  would  not  sell  us  vessels.  "That  may  be  again.  We  had  better 
be  ready  to  do  our  work  at  home.  Without  knowing  much  of  the  policy 
of  the  government,  it  seems  to  me  that  if  the  government  should  give 
up  all  its  navy  yards  and  should  have  its  ships  outside,  it  would  be  bet 
ter  for  the  government  in  case  of  an  emergency.  The  navy  yards  were 
not  worth  the  room  they  took  during  the  war.  They  never  built  an  iron 
clad  during  the  war.  The  government  had  to  take  for  that  purpose  to 
poor  fellows  like  myself.  As  to  the  cost  of  machinery  here,  that  can  be 
constructed  by  the  horse-power  for  the  same  money  as  is  paid  in  England. 
Mr.  Delamater  and  Mr.  Eoach,  of  the  Morgan  Iron  Works,  would  take  a 
contract  to-day  to  do  it. 

Mr.  HOLMAN.  Then  you  are  inclined  to  attribute  the  decline  in  our 
ship-owning  and  ship-building  commerce  to  the  fact  that  American  capi 
talists  are  not  satisfied  with  the  small  rate  of  interest  that  English  capi 
talists  are  satisfied  with  ? 

Mr.  ROWLAND.  Yes,  sir.  There  is  to-day,  in  our  port,  an  iron  ship 
that  was  built  in  Wilmington,  Delaware,  and  she  lies  here  without  any 
business.  I  do  not  know  why  it  is.  She  has  been  here  three  or  four 
weeks,  and  there  is  no  business  to  be  found  that  would  pay  her.  She  is 
a  ship  of  eight  hundred  tons,  as  splendid  a  vessel  as  ever  entered  the 
port  of  New  York.  There  is  apparently  no  business  for  her.  She  lies 
at  the  dock  paying  wharfage,  waiting  for  freight,  I  suppose. 

Mr.  MORRELL.  Do  you  not  think  that  there  are  certain  combinations 
of  great  shipping  lines  to  divert  freight  into  the  channels  in  which  these 
foreign  vessels  are  chiefly  employed  ' 

Mr.  ROWLAND.  No ;  I  guess  that  merchants  go  where  they  can  get 
things  cheapest.  These  Englishmen  carry  for  less  money  than  we  do. 
They  are  satisfied  with  less  profit  upon  their  investments. 

Mr.  WELLS.  Is  it  your  opinion  that  the  allowing  of  drawbacks-  on  the 
materials  used  in  shii)-building  would  facilitate  and  encourage  the  build 
ing  of  ships  here? 

Mr.  ROWLAND.  It  would  make  a  ship  cost  fourteen  or  fifteen  dollars  a 
ton  less,  and  that  would  help  us  some  ;  there  is  no  doubt  of  it. 

Mr.  CALKIN.  You  spoke  of  building  ships  of  a  lighter  class  of  iron, 


30  NAVIGATION   INTERESTS. 

using  a  better  quality,  of  course  not  giving  so  great  a  weight.  Please 
to  state  that  again. 

Mr.  EOWLAND.  An  inch  square  bar  of  English  iron  is  supposed  to 
hang  up  20,000  pounds  without  breaking.  I  suppose  that  would  be  the 
test  of  a  bar  of  English  iron.  A  bar  of  American  iron  of  the  same  size 
would  be  considered  rather  poor  if  it  did  not  hold  up  40,000  pounds. 

Mr.  MORRELL.  The  average  is  00,000  pounds'? 

Mr.  EOWLAND.  Yes,  sir.  The  Abbott  Company  iron  will  carry  40,000 
pounds  sure.  Under  Lloyds'  rules  we  are  bound  to  put  quite  as  much 
of  that  40,000  pounds  iron  into  a  ship  as  an  Englishman  puts  in  of  the 
20,000  pounds  iron.  The  one  costs  about  two  and  a  half  cents  a  pound 
in  gold,  and  we  pay  from  four  and  a  half  to  five  cents  a  pound  in  cur 
rency,  so  that  really  our  iron  does  not  cost  a  great  deal  more  than  theirs, 
if  you  take  it  by  the  real  value.  But  if  you  take  it  by  the  thickness, 
they  can  beat  us  to  death.  But  where  we  do  beat  them  is  in  our  labor. 
They  pay  a  great  deal  less  for  labor  than  we  do  ;  but  we  do  more  in  one 
day  than  they  do,  and  what  we  lose  in  iron  we  gain  in  labor. 

Mr.  HOLM  AN.  Do  you  pretend  to  say  that  the  English  capitalist  is 
satisfied  with  less  profit  and  a  less  rate  of  interest  as  well  on  the  build 
ing  as  on  the  earnings  of  ships  ? 

Mr.  EOWLAND.  I  think  so. 

Mr.  HOLMAN.  And  you  attribute  the  decline  in  ship-building  and  in 
American  commerce  largely  to  that  fact? 

Mr.  EOWLAND.  I  think  that  the  American  people  got  pretty  well 
discouraged  during  the  war  by  having  their  vessels  taken  away,  and 
they  went  into  other  speculations  in  which  there  is  a  great  deal  more 
gain  with  less  risk. 

Mr.  HOLMAN.  Speaking  of  Lloyds'  regulation  in  regard  to  the  weight 
of  iron  in  ships,  that  has  only  reference  to  the  insurance? 

Mr.  EOWLAND.  That  is  all  5  but  the  insurance  of  a  ship  is  the  life  of 
her.  If  we  cannot  insure  our  ships  there  is  no  use  in  building  them. 

Mr.  HOLMAN.  To  what  extent  does  that  rule  act  ? 

Mr.  EOWLAND.  It  acts  the  world  over.  An  American  ship  to-day 
would  not  pass  Lloyds'  muster.  To-day  there  are  American  vessels  in 
China  lying  up  for  want  of  trade,  while  there  is  freight  waiting  for  Eng 
lish  vessels  built  under  Lloyds'  rule. 

Mr.  HOLMAN.  English  vessels  as  well  as  American  vessels  are  insured 
here  in  the  same  way? 

Mr.  EOWLAND.  Yes,  sir. 

Mr.  MORRELL.  Would  it  not  be  an  advantage  to  American  commerce 
if  our  merchants  could  establish  something  like  Lloyds  regulations  here? 

Mr.  EOWLAND.  Yes,  sir;  and  if  we  could  make  Englishmen  come 
under  it  at  this  end  of  the  route,  it  would  hurt  them  some ;  there  is  no 
doubt  of  it. 

Mr.  MORRELL.  Is  it  not  time  that  we,  as  a  nation,  should  establish 
our  own  registration  of  ships J? 

Mr.  EOWLAND.  Yes,  sir. 

Mr.  HOLMAN.  How  long  has  this  evil  been  felt? 

Mr.  EOWLAND.  It  is  about  twelve  years  since  Lloyd's  rule  was  origi 
nally  established.  Four  years  ago,  after  the  Eoyal  Charter  and  other 
vessels  were  lost,  they  went  to  work  and  got  up  a  new  set  of  rules 
requiring  more  iron  than  before,  and  the  inspection  since  then  has  been 
more  rigid  than  it  was  before. 

Mr.  HOLMAN.  Has  this  question  ever  been  a  subject  of  diplomacy 
between  this  government  and  the  English  government? 

Mr.  EOWLAND.  Not  that  I  am  aware  of.     I  do  not  know  than  any 


NAVIGATION    INTERESTS.  31 

effort  was  ever  made  by  the  United  States  to  relieve  American  ship 
owners  from  the  effect  of  the  English  rule  in  reference  to  insurance. 
This  rule  has  existed  ever  since  iron  vessels  have  been  in  vogue. 

Mr.  L.  A.  SMITH,  of  the  Continental  Iron-works,  New  York,  next  ad 
dressed  the  committee.  He  said  that  there  appeared  to  be  a  discrepancy 
between  the  ship-owners  and  ship-builders.  The  ship-owner  wanted  his 
ship  free;  but  if  absolute  free  trade  in  ships  were  established,  he  believed 
that  the  ship-builder  could  not  keep  his  business  going.  There  should 
be  absolute  and  unconditional  free  trade  for  all  or  for  none.  If  the 
manufacturing  interests  of  the  country  were  to  be  protected,  the. ship 
building  interest  should  be  protected.  As  to  allowing  iron  ships  built 
in  England  to  be  brought  in  here  duty  free,  and  to  run  under  an  Aimg-i- 
can  registration,  it  would  simply  amount  not  only  to  allowing  English 
iron  to  come  in  duty  free,  but  also  to  allowing  English  labor  to  come  in 
duty  free.  He  had  been  at  some  little  pains  within  the  last  day  or  two 
to  ascertain  the  cost  of  a  thousand-ton  iron  sailing-ship,  built  in  New 
York,  to  comply  with  Lloyds7  specification,  and  fitted  out  ready  for  sea, 
excepting  stores.  It  would  cost  $121,000.  The  same  vessel  would  be 
built  in  England  at  £16  per  ton,  which,  allowing  currency  and  ex 
change  to  be  at  $1  40,  would  make  it  cost  in  our  currency  very  nearly 
8116,060.  That  would  be  a  little  over  4,000  less  than  the  American- 
built  ship,  and  that  showed  about  the  extent  of  the  relief  that  American 
ship-builders  wanted.  The  duty  on  iron  averaged  about  thirty-live  per 
cent.  The  duty  on  the  iron  in  such  a  ship  would  be  about  8-1,000  ;  so 
that  if  that  duty  were  taken  off,  it  would  give  the  American  builder  an 
advantage  of  between  816,000  and  817,000. 

Mr.  MORRELL.  You  mean  pound  for  pound  of  iron,  making  the  Ameri 
can  ship  of  the  same  weight  as  the  English  ? 

Mr.  SMITH.  Exactly.  As  to  the  question  of  steam,  they  are  paying  in 
England  from  £45  to  £50  per  horse-power.  At  that  rate  American 
engines  could  be  built  at  good  profit,  though  not  English  engines,  per 
haps. 

Mr.  MORRELL.  Does  that  include  the  boiler,  &c.  f 

Mr.  SMITH.  Yes ;  it  includes  the  engine  complete,  ready  to  propel  the 
ship.  The  Pacific  Mail  Steamship  Company  is  running  its  ships  with  a 
consumption  of  about  forty  tons  ot  coal  a  day,  and  making  between 
eleven  and  thirteen  knots.  They  are  about  three-thousand-ton  ships. 
The  Clyde-built  steamers,  I  believe,  are  using  from  fifty  to  seventy  tons 
of  coal  per  twenty-four  hours,  and  are  making  about  the  same  rate  of 
speed. 

The  CHAIRMAN.  The  Pacific  Mail  Company's  ships  are  American- 
built? 

Mr.  SMITH.  Yes ;  they  are  American-built,  and  with  American  engines ; 
they  are  built  of  wood;  they  are  not  as  good  ships  as  the  Clyde  or  T\  in 
built  vessels ;  that  is,  they  are  not  such  shapely  ships,  but  their  engines 
appear  to  be  superior. 

The  CHAIRMAN.  Do  I  understand  you  to  say  that  American  engines 
can  be  built  as  cheaply  here  as  in  England1? 

Mr.  SMITH.  Yes,  sir. 

The  CHAIRMAN.  The  difference,  then,  is  only  in  the  hull  of  the  vessel  2 

Mr.  SMITH.  The  difference  would  not  be  even  in  the  hull  if  we  could 
put  in  American  iron  according  to  its  real  merits.  They  build  ships  in 
England  of  steel  or  semi-steel;  it  is  not  a  very  good  material— it  is  ratlu-r 
treacherous ;  but  where  they  have  built  those  ships  and  shown  a  tensile 
strength  of  sixty  or  seventy  pounds  to  the  square  inch,  a  reduction  has 
been  allowed  in  their  scantling;  if  that  same  reduction  could  be  allowed 


32  NAVIGATION   INTERESTS. 

to  Ainerican-bnilt  ships,  that  would  sustain  from  one-third  to  one-half 
more  tensile  strength  than  the  English  iron,  then  the  enhanced  cost  of 
the  American  iron  would  be  made  up  practically  to  the  builder  and  the 
owner  of  the  ship.  If  we  had  an  American  insurer  as  reliable  all  over 
the  world  as  Lloyds,  then  we  should  have  no  difficulty  in  the  matter. 

Mr.  BUFFINTON.  Has  there  been  any  recent  improvements  in  steam- 
engines? 

3Ir.  SMITH.  Yes,  sir;  a  good  many. 

Mr.  BUFFINTON.  I  suppose  you  know  the  machinery  and  engines  of 
the  Old  Colony,  the  Newport,  the  Providence  and  the  Bristol  steam 
boats  I 

•Mr.  SMITH.  Yes,  sir. 

Mr.  BUFFINTON.  Do  you  know  that  the  Providence  and  the  Bristol 
consume  in  a  trip  from  ten  to  fifteen  tons  less  coal  than  the  other  two 
boats,  while  they  are  much  larger  boats  ? 

Mr.  SMITH.  I  do  not  know  that ;  I  have  no  information  on  the  sub 
ject, 

Mr.  BUFFINTON.  If  it  is  so,  it  is  not  the  result  of  the  model  of  the 
boats  ? 

Mr.  SMITH.  No,  sir  ;  the  Old  Colony  and  the  New  Bedford  are  as  good 
models  of  boats  as  the  Bristol  and  the  Providence;  if  that  is  the  fact,  it 
arises  from  the  construction  of  the  motive  power,  either  in  the  engines 
or  in  the  furnace. 

Mr.  WILLIAMS,  of  the  firm  of  Williams  &  Guion,  ship-owners,  next 
addressed  the  committee.  He  said  that  the  great  difficulty  in  the  way 
of  our  navigation  was,  he  supposed,  pretty  apparent.  The  English  had 
got  the  tools  to  work  with  and  we  had  not;  and  the  English  were  run 
ning  away  with  our  business.  The  English  had  started  with  iron  steamers 
years  ago,  had  followed  it  up,  and  had  arrived  at  a  great  degree  of  per 
fection.  The  Americans  had  not  done  so ;  they  were  just  making  a  com 
mencement,  he  might  say.  There  were  very  few  iron  vessels  built  here ; 
he  believed  that  there  was  only  one  square-rigged  iron  sailing  vessel 
built  here,  and  that  one  was  built  recently.  Iron  vessels,  both  of  steam 
and  of  sail  power,  were  generally  approved  by  shippers.  They  were 
much  the  superior  class  of  vessels ;  underwriters  would  insure  them  at 
much  less  rates,  and  of  course  that  was  operating  against  wooden  ves 
sels  and  against  the  American  shipping  interest.  That  was  the  whole 
thing,  and  the  question,  he  supposed,  was  how  to  overcome  that  diffi 
culty. 

The  CHAIRMAN.  Have  you  had  vessels  built  in  England  ? 

Mr.  WILLIAMS.  Yes,  sir. 

The  CHAIRMAN.  Have  you  made  any  comparison  as  to  the  cost  of 
building  on  each  side  ?  Have  you  got  any  proposals  from  parties  here 
to  build  iron  ships  ? 

Mr.  WILLIAMS.  I  cannot  say  that  we  have  had  proposals.  WTe  have 
had  specifications  made  out,  and  some  approximation  to  the  cost. 

The  CHAIRMAN.  Do  you  regard  the  difference  in  the  cost  between 
American  and  English  built  ships  as  being  the  main  difficulty  in  the 
way? 

Mr.  WILLIAMS.  I  do  not  know  what  the  difference  is ;  but,  of  course, 
that  is  a  very  important  point.  But  we  have  not  been  prepared  here  to 
build  iron  ships ;  we  have  had  no  works  here  to  enter  on  that  large  busi 
ness  of  building  iron  steamers  of  two  thousand  tons  and  upward.  We 
have  not  had  experience  in  it  to  do  it  to  a  large  extent  on  an  economi 
cal  basis.  Daring  the  war  a  great  many  iron  vessels  were  built  here; 


NAVIGATION   INTERESTS.  33 

but  I  do  not  think  that  they  would  meet  the  economical  wants  of  our 
commercial  interests. 

The  CHAIRMAN.  How  many  English  ships  have  you  running  in  your 
line? 

Mr.  WILLIAMS.  We  have  six  running  now. 

The  CHAIRMAN.  What  is  about  the  cost  per  ton  of  that  class  of  ves 
sels  in  England  ? 

Mr.  WILLIAMS.  They  are  not  all  the  same  price.  They  cost  perhaps, 
on  the  average,  about  £22  or  £23  per  ton.  They  are  three  thousand 
ton  ships,  some  a  little  less  and  some  a  little  more.  They  are  iron  pro 
pellers  running  from  two  thousand  eight  hundred  to  three  thousand  five 
hundred  tons.  That  price  includes  all  the  outfit  of  the  ship  ready  for 
sea. 

The  CHAIRMAN.  Do  you  know  whether  the  English  have  any  advan 
tage  over  ourselves  in  the  sailing  of  their  vessels  outside  of  the  govern 
ment  subsidy  ? 

Mr.  WILLIAMS.  I  think  they  have.  I  think  that  generally  they  man 
their  ships  more  economically.  I  do  not  know  that  there  is  any  princi 
ple  which  shows  that  that  should  be  so,  except  simply  that  we  have  not 
had  the  experience.  We  have  a  great  many  American  sailing  ships, 
but  not  steamers,  engaged  in  the  foreign  trade.  Sailing  between  Liver 
pool  and  New  York,  the  trade  that  we  are  engaged  in,  the  foreign  ves 
sel  would  have  no  advantage  over  the  American  in  regard  to  fuel, 
although  you  get  fuel  in  England  cheaper  than  you  get  it  here.  But 
when  vessels  are  sailing  from  both  ports  their  facilities  for  get  ting  cheap 
fuel  are  the  same.  I  think  that  the  officers  and  crews  of  English  ships 
generally  sail  at  less  rates.  I  think  it  is  certainly  so  at  present,  and 
has  been  so  up  to  this  time. 

The  CHAIRMAN.  Do  you  officer  and  man  your  vessels  principally  with 
Englishmen1? 

Mr.  WILLIAMS.  Mainly  so.    We  have  a  great  many  Americans. 

The  CHAIRMAN.  About  the  same  proportion  of  Americans,  I  suppose, 
as  there  would  be  of  Englishmen  in  an  American  ship  ! 

Mr.  WILLIAMS.  Yes,  sir. 

The  CHAIRMAN.  But  the  character  of  the  vessel  and  crew  is  English? 

Mr.  WILLIAMS.  Yes,  sir;  necessarily  so. 

Mr.  CALKIN.  There  is  also  an  advantage  in  being  able  to  buy  your 
liquors  and  stores  in  bond  on  the  other  side ? 

Mr.  WILLIAMS.  There  is  a  very  great  advantage  in  that;  but  that  ad 
vantage  we  would  have  with  an  American  vessel  as  well  as  with  an 
English  vessel. 

Mr.  WELLS.  The  English  government  gives  you  the  same  advantage 
in  that  respect  under  the  American  flag  as  under  the  English  flag? 

Mr.  WILLIAMS.  Precisely.  There  is  no  distinction  at  all.  We  go  in 
there  with  American  ships,  and  we  take  our  stores  out  of  bond  duty 
free. 

The  CHAIRMAN.  I  understand,  then,  that  your  vessels  are  substan 
tially  English  vessels? 

Mr.  WILLIAMS.  Yes,  sir;  we  have  nothing  but  American  captains. 

The  CHAIRMAN.  Would  not  the  effect  of  building  our  vessels  in  Great 
Britain  be,  in  the  ordinary  course  of  business,  to  have  them  substan 
tial^  English  vessels,  manned,  officered,  and  fitted  out — would  it  not 
substantially  transfer  the  business,  except  as  to  the  ownership,  to  Great 
Britain? 

Mr.  WILLIAMS.  O,  no;  that  would  not  be  so.  If  we  put  them  under 
the  American  flag  of  course  we  should  be  subject  to  United  States  laws, 

3NI 


31  NAVIGATION   INTERESTS. 

and  could  not  have  a  foreign  crew.  We  might,  perhaps,  have  English 
engineers;  but  as  to  officers,  captains,  and  mates,  they  should  be  Ameri 
cans.  I  think  that  this  thing  is  all  in  a  nut-shell.  What  \ve  are  seeing 
now  was  as  apparent  to  me  fifteen  years  ago  as  it  is  to-day.  I  saw  that  we 
were  going  to  lose  our  commerce  simply  from  the  effect  of  the  advan 
tage  which  Great  Britain  had  over  us  in  the  building  of  iron  steamers, 
They  had  seen  the  advantage  of  those  steamers  before  we  did,  and  had 
facilities  for  building  them,  and  pressed  the  business  ahead. 

The  CHAIRMAN.  l)id  that  advantage  become  manifest  before  the  com 
mencement  of  the  war  ? 

Mr.  WILLIAMS.  It  was  man  ifest  to  me  fifteen  years  ago. 

The  CHAIRMAN.  When  did  it  develop  itself? 

Mr.  WILLIAMS.  It  had  commenced  to  develop  itself  in  1858.  I  went 
to  England  expressly  for  that  purpose,  seeing  that  we  could  not  get 
American  iron  vessels  here,  and  could  not  get  foreign  iron  vessels  regis 
tered  under  the  American  flag.  The  war  only  hurried  on  the  develop 
ment. 

Mr.  WELLS.  From  your  experience,  what  remedy  of  legislation  would 
you  recommend? 

Mr.  WILLIAMS.  I  am,  myself,  a  free-trade  man.  I  go  for  free  ships. 
That  policy  would  certainly  have  saved  our  commerce  to  a  very  great 
degree,  if  it  had  been  adopted  fifteen  years  ago. 

Mr.  WELLS.  That  policy  was  adopted  in  Germany  and  France  as  well 
as  in  England  f 

Mr.  WILLIAMS.  Yes,  sir. 

Mr.  WELLS.  As  I  understand,  they  buy  their  ships  wherever  they 
can  get  them  cheapest,  and  run  them  under  their  own  flag  1 

Mr.  WILLIAMS.  Yes,  sir.  Most  of  the  vessels  in  the  French  and 
Bremen  lines  have  been  built  in  England. 

Mr.  WELLS.  Are  all  the  lines  of  steamers  between  this  port  and  the 
ports  of  Great  Britain  subsidized  lines  ? 

Mr.  WILLIAMS.  No,  sir  j  the  only  subsidized  lines  are  the  mail  lines. 
The  Cunarders  run  two  boats  a  week.  One  of  them  is  subsidized  and 
the  other  not.  The  Inmans  run  one  boat  weekly  here,  which  is  subsi 
dized,  and  one  fortnightly,  by  way  of  Halifax,  which  is  subsidized ;  but  a 
large  part  of  the  tonnage  is  not  subsidized. 

Mr.  HOLMAN.  What  restrictions  are  imposed  upon  a  foreigner  in  Eng 
land  as  to  obtaining  a  registry  on  a  vessel  which  he  purchased  there  ? 
Can  he  hold  the  title  himself  and  obtain  the  registration  ? 

Mr.  WILLIAMS.  I  apprehend  not.     /• ,: 

Mr.  HOLMAN.  The  title  of  the  vessel  must  be  in  a  British  citizen  ? 

Mr.  WILLIAMS.  Yes,  sir ;  I  think  so. 

Mr.  HOLMAN.  The  fact  of  a  foreigner  being  an  owner  constitutes  no 
impediment  to  obtaining  the  registration? 

Mr.  WILLIAMS.  I  really  cannot  answer  as  to  that.  As  regards  our 
own  case,  we  are  only  part  owners.  W^e  are  shareholders  in  an  incor 
porated  company. 

The  CHAIRMAN.  Have  not  these  lines  been  established  under  sub 
sidies  ? 

Mr.  WILLIAMS.  No,  sir ;  the  largest  amount  of  tonnage  between  here 
and  Liverpool  has  never  been  subsidized.  One  boat  each  week  of  the 
Cunard  line  and  one  of  the  Inman  line  are  subsidized ;  but  the  Iiiman 
line  ran  for  a  dozen  years  without  being  subsidized.  It  is  only  recently, 
within  a  year  or  two,  that  they  got  that  contract.  The  Cunard  freight 
line,  and  the  National  line,  and  our  line,  have  never  been  subsidized. 


NAVIGATION    INTERESTS.  35 

Mr.  WELLS.  Are  not  the  French  and  German  steamers  that  run  to 
this  port  subsidized  ? 

Mr.  WILLIAMS.  Yes,  sir ;  they  have  mail  contracts ;  they  all  get  more 
or  less  compensation  from  their  own  governments,  and  some  of  them 
from  our  government,. for  the  mails  that  they  carry;  and  they  get  some 
from  the  British  government  for  the  letters  that  they  carry  to  England, 
Vessels  stopping  at  Southampton  and  Plymouth  get  a  certain  portion  oi 
the  mail  money. 

Mr.  HOLMAN.  Is  there  any  commercial  nation  except  ours  that  inquires 
into  the  fact  of  where  a  vessel  is  constructed,  for  determining  the  ques 
tion  as  to  granting  registration  ? 

Mr.  WILLIAMS.  Yes,  sir ;  I  presume  that  they  all  do.  In  England 
transfers  are  made  without  impediment;  but  in  France  there  is  a  duty 
of,  I  think,  ten  per  cent,  imposed  on  foreign-built  ships. 

Mr.  HOLMAN.  Is  there  a  duty  imposed  by  most  other  nations? 

Mr.  WILLIAMS.  I  am  not  advised  as  to  that. 

Mr.  NELSON,  a  member  of  the  Ship-owners7  Association  of  New  York, 
next  addressed  the  committee.  He  thought  that  the  question  before 
the  committee  was  one  which  concerned  the  whole  country,  not  one 
particular  portion  of  it.  All  were  directly  interested  in  this  matter  of 
ship-building.  Ship-owners  were  clogged  and  dragged  down  by  what 
he  considered  an  obsolete  and  a  fossil  law — a  law  which  compelled  them 
to  buy  their  vessels  in  this  country  alone.  It  was  a  law  copied,  he 
thought,  from  the  enactments  of  the  time  of  Cromwell,  and  yet  the 
American  government  was  still  sticking  to  that  old  law.  Our  commer 
cial  rival,  Great  Britain,  had  known  the  effect  of  that  law  and  had  twice 
altered  it,  the  last  time  in  1854.  In  that  year  the  American  tonnage 
was  5,100,000  tons,  equal  to  that  of  Great  Britain ;  but  now  what  was 
it  ?  It  had  declined  within  the  last  ten  years  fifty  per  cent.,  whereas 
the  tonnage  of  England  had  increased  to  about  7,500,000  tons.  The 
whole  tonnage  of  the  world,  outside  that  of  Great  Britain,  was  some 
thing  like  9,800,000  tons.  Deducting  from  that  all  the  river  tonnage 
and  lake  tonnage,  fishing  boats  and  canal-boats,  and  reducing  it  down 
to  ocean  tonnage,  it  would  be  found  that  the  tonnage  of  Great  Britain 
at  this  day  was  equal  to  that  of  the  rest  of  the  world.  The  business  of 
entering  and  clearing  from  British  ports  had  so  increased  that  statistics 
showed  that  they  carried  last  year  from  sixty  to  seventy  per  cent,  of  the 
whole  business,  while  all  other  countries  carried  only  about  thirty -three 
per  cent.  They  were  all  seeking  about  to  find  where  the  trouble  lay, 
and  it  was  a  ray  of  light  to  see  the  appointment  of  this  committee. 
They  had  nearly  given  up  every  hope,  but  they  now  trusted  that  this 
committee  would  make  such  a  report  and  would  so  sift  the  thing  down 
as  to  find  a  solution  of  the  trouble. 

There  were  three  important  things  necessary  to  increase  American 
tonnage:  first,  the  vessels;  second,  marine  insurance;  third,  negotia 
bility,  based  both  on  the  vessel  and  on  marine  insurance.  They  first 
wanted  to  get  the  vessels,  but  American  capital  was  now  invested  in 
lands,  houses,  bonds,  and  all  other  interests  that  give  a  better  return 
than  shipping  gives.  He  would  leave  it  to  any  ship-owner  in  New  York 
and  vicinity  to  say  whether  or  not  the  owning  of  tonnage  for  the  last 
three  years  had  not  been  a  grievous  thing  to  his  pocket.  The  knowl 
edge  tliat  a  man  was  keeping  race-horses  would  probably  not  help  his 
character  as  a  business  man,  but  really  the  character  of  owning  ships 
was  about  equal  to  that.  After  the  Crimean  war  he  had  been  in  London 
and  he  found  the  docks  there  full  of  transports,  vessels  that  were  owned 
by  doctors,  clergymen,  ladies,  bishops,  apothecaries,  tin-smiths,  and  all 


36  NAVIGATION   INTERESTS. 

classes  of  tlie  community.  Every  one  owned  a  little  piece,  and  many  ol 
them  made  large  fortunes  during  the  war;  but  since  the  war  had  closed 
they  were  very  glad  to  get  rid  of  their  vessels.  He  had  seen  some  very 
fine  boats  there  for  sale,  and  thought  it  would  be  a  good  thing  if  they 
could  be  bought  and  owned  here ;  but  the  collector  at  New  York  informed 
him  that  they  could  not  be  owned  and  registered  here.  He  had  asked 
the  collector  whether  he  could  not  own  them  and  put  them  under  some 
body  else's  name.  The  collector  said:  "Mr.  Nelson,  if  you  can  swear 
that  no  person  except  a  citizen  of  the  United  States  owns  them,  or  is 
directly  or  indirectly  interested  in  their  profits,  you  can  take  them.'3 
He  (Mr.  Nelson)  had,  therefore,  to  drop  that  idea,  and  he  presumed  that 
there  were  others  at  the  same  time  willing  to  do  the  same  thing.  But 
the  Germans  saw  the  chance,  bought  two  or  three  of  those  boats,  fitted 
them  up  as  passenger  boats  and  sent  them  to  this  country  as  a  nucleus 
for  new  lines,  and  they  had  now  grown  into  extensive  steamship  lines. 
Gentlemen  had  said  that  the  English  people  were  contented  with  less 
profit  than  Americans  would  be.  He  did  not  admit  that  that  was  so  ; 
they  were  not  contented  with  small  profits.  Some  years  ago  the  Anchor 
line  to  Glasgow  consisted  of  one  solitary  ship,  and  now  that  same  line 
had  thirty  steamers,  all  built  out  of  the  profits  of  their  business.  To  this 
day  the  Chinaman  was  operating  under  the  same  navigation  law  that  he 
was  operating  under  thirty  centuries  ago,  and  the  Americans  were  just 
following  that  example,  wanting  to  shut  out  everything.  He  did  not 
think  that  that  was  a  proper  mode  to  pursue.  If  nature  had  placed  iron 
and  coal  and  a  superabundant  population  in  one  portion  of  the  world, 
enabling  iron  vessels  to  be  built  cheaper  than  elsewhere,  Americans 
should  take  advantage  of  that  and  buy  their  vessels  where  they  could 
get  them  cheapest.  Mr.  Rowland  had  said  that  he  could  build  an  iron 
vessel  within  ten  per  cent,  as  cheap  as  it  can  be  built  in  Great  Britain, 
and  yet  for  two  years  he  had  been  trying  to  get  an  order  and  could  not 
get  one.  That  gentleman  thought  that  American  capitalists  wanted 
more  return  for  their  money  than  the  Englishmen  did,  and  that,  there 
fore,  they  would  not  invest  in  ships ;  but  surely  the  business  of  New 
York  was  open  to  the  capitalists  of  the  whole  world  on  the  other  side  of 
the  water.  However,  they  had  the  business  so  nicely  digested  and  so 
nicely  arranged  that  capitalists  were  always  ready  to  come  forward  and 
advance  money  upon  any  steamship  line.  But  what  was  the  case  here? 
There  was  no  security  to  be  had  on  wooden  vessels.  Wooden  vessels 
had  had  their  day.  In  Maine,  to  be  sure,  there  had  been  considerable 
money  made  in  the  building  of  wooden  vessels ;  but  they  had  lost  a  great 
many  such  vessels.  The  loss  from  1854  to  1858  had  been  one  thousand 
two  hundred,  and  the  loss  for  the  last  five  years  was  about  one  thousand 
eight  hundred.  Many  gentlemen  on  the  committee  were  probably  not 
familiar  with  the  ship-owning  interests.  It  was  absolutely  ridiculous 
for  a  man  to  spend  his  time  now  in  going  around  among  capitalists  and 
soliciting  them  to  invest  money  in  ships.  An  old  ship-owner  had  said  to 
him  a  day  or  two  ago,  that  a  man  who  would  invest  money  in  ships  here 
was  deemed  a  lunatic.  And  why  !  Because  there  was  no  security  in 
lending  money  on  a  vessel.  Americans  could  not  build  up  their  tonnage 
unless  they  could  buy  their  ships  where  they  could  buy  them  cheapest. 
He  supposed  that  there  must  be  more  or  less  shipping  consisting  of  sail 
ing-vessels;  but  the  great  desideratum  now  was  speed,  and  therefore 
the  great  bulk  of  the  commerce  would  be  done  in  steamships.  If  the 
Englishman,  the  Frenchman,  or  the  German  could  come  to  New  York 
and  do  business  between  New  York  and  New  Orleans  cheaper  than  he 
could  do  it,  let  them  do  so,  and  let  the  people  of  the  country  receive  the 


NAVIGATION   INTERESTS.  37 

advantage  of  it.  Six  years  ago  there  were  between  thirty  and  forty 
large  ships  being  built  in  New  York  alone.  Now  there  was  but  one.  Two 
years  ago,  for  the  space  of  four  months,  there  was  not  a  single  American 
ship  or  vessel  going  from  New  York  to  Liverpool,  whereas  there  used  to 
be  six  or  eight  great  lines  of  ships  in  that  trade.  American  sailors  were 
all  going  into  other  avocations,  and,  in  a  short  time,  there  would  be  very 
few  American  sailors  left.  He  should  like  to  see  this  committee  take  up 
this  question  of  supplying  American  ships  with  sailors;  because,  in  case 
of  foreign  war,  sailors  would  be  wanted.  He  should  like  to  see  every 
ship  obliged  to  carry  a  certain  number  of  apprentices.  He  should  also 
like  to  see  all  the  local  pilot  laws  of  the  country  repealed,  and  one  gen 
eral  statute  passed  to  cover  all  the  points. 
The  following  letter  was  received  from  Mr.  Allston  Wilson  : 

NEW  YORK,  October  15,  18G9. 
Hon.  John  Lynch,  Chahinan  of  Committee,  $c. : 

DEAR  SIR  :  As  a  member  of  the  committee  of  tlie  Ship-owners'  Association,  and  having 
been  prevented  from  attending  the  conference  held  yesterday,  I  desire  to  call  your 
attention  to  a  collateral  branch  of  the  subject  which  does  not  appear  to  have  been  dis 
cussed  before  you  by  my  colleagues.  While  fully  agreeing  with  those  gentlemen  in 
their  statements  that  the  only  salvation  for  the  shipping  interest  under  our  flag  is  to 
admit  to  free  registry  all  vessels  upon  their  becoming  the  property  of  American  citi 
zens,  I  would  add  that  free  ships  require  free  sailors,  and  therefore  suggest  the  removal 
of  all  restrictions  as  to  the  nationality  of  officers  and  men  serving  iu  our  mercantile 
marine.  It  is  an  admitted  fact  that  our  navigation  laws  are  behind  the  times,  and 
that  we  require  a  new  code  that  will  not  suffer  in  comparison  with  that  of  Great  Brit 
ain,  which  passed  in  1854  an  act  known  as  the  merchants'  shipping  act.  many  of  the 
provisions  of  which  might  be  adopted  to  advantage  in  this  country,  to  assure  the  better 
protection  of  seamen,  and  to  secure  an  organized  system  of  shipping  and  discharging 
by  proper  officers,  with  forms  of  certificates  of  capacity  and  conduct.  The  mercantile 
community  being  alive  to  the  alarming  decrease  of  their  tonnage,  it  becomes  those  of 
•is  who  have  the  ear  of  your  committee  to  present  our  opinions  for  suitable  legislation. 
Very  truly,  yours. 

ALLSTON  WILSON. 

Mr.  WILLIAM  H.  WEBB  next  came  before  the  committee.  He  said 
that  he  was  not  prepared  to  make  any  statements,  but  would  answer  any 
questions  that  might  be  asked.  He  did  not  see  the  ship-owners  of  New 
York  represented  before  the  committee.  He  did  see  some  members  of 
the  Ship-owners'  Association,  but  in  his  opinion  they  did  not  represent 
the  ship-owners  of  New  York.  He  had  heard  the  sentiment  expressed 
"by  some  ship-owners  that  they  would  be  very  glad  if  the  meeting  of  the 
committee  could  be  postponed  for  a  little  time,  until  they  could  get 
together  and  put  their  views  in  some  shape  to  lay  before  the  committee. 

The  CHAIRMAN  intimated  that  the  committee  would  be  very  glad  if  the 
ship-owners  would  do  so. 

Mr.  WEBB  repeated  that  the  principal  ship-owners  of  New  Yerk  were 
certainly  not  represented  by  the  Ship-owners'  Association.  Those  who 
were  most  largely  engaged  in  the  business  were  not  connected  with  that 
association. 

Mr.  WELLS.  I  understand  you  to  be  a  ship-builder  as  well  as  a  ship 
owner? 

Mr.  WEBB.  Yes,  sir ;  I  have  been  long  engaged  in  the  building  of 
ships,  and  I  have  been  heretofore  very  largely  interested  in  sailing  ships ; 
and  1  suppose  that  to-day  I  have  as  large  an  interest  in  steamships  as 
any  other  man  in  the  country. 

Mr.  WELLS.  What  remedy  would  you  recommend  for  the  present 
depressed  condition  of  commerce  and  ship-building  ! 

Mr.  WEBB.  My  general  views  are  that  if  Congress  would  pass  a  law 
freeing  all  materials  that  enter  into  ship-building  from  the  payment  of 


38  NAVIGATION    INTERESTS. 

duties,  we  could  then  begin  to  build  ships  and  could  compete  with  any  for 
eign  ship-builders.  It  has  been  said  that  that  would  open  the  door  to  a 
great  many  frauds  upon  the  government.  To  avoid  that,  I  would  suggest 
that  the  materials  when  purchased  and  when  used  in  the  ship  should  be 
ascertained  by  the  government  in  such  manner  as  might  be  deemed 
best  for  its  own  security,  and  that  then  the  drawback  should  be  made 
upon  the  materials  that  were  absolutely  used  in  the  ship.  I  think  that 
that  would  enable  the  government  to  adopt  this  plan  without  being 
defrauded. 

The  CHAIRMAN.  I  understood  you  to  say  that  you  are  not  now 
engaged  in  the  construction  of  vessels,  but  that  you  are  merely  a  ship 
owner"? 

Mr.  WEBB.  I  have  a  ship-building  establishment,  and  keep  it  open, 
but  unfortunately  we  do  not  do  much  business  there.  I  am.  sorry  to  say 
that  in  that  yard,  where  we  built  a  great  many  ships,  the  grass  is  now 
growing. 

The  CHAIRMAN.  As  a  constructor  of  vessels,  do  you  give  it  as  your 
opinion  that  you  can  build  ships  in  competition  with  the  ship-builders  of 
Great  Britain  if  you  are  allowed  a  draw-back  to  the  amount  of  the  duties 
on  the  materials  entering  into  the  construction  of  vessels  ? 

Mr.  WEBB.  I  do,  under  the  protection  that  the  ship-building  interest 
has  in  the  prohibition  of  foreign  bottoms  being  owned  and  registered 
in  this  country.  We  built  ships  in  this  country,  from  here  to  Maine,  so 
cheaply  and  so  well  that  we  absolutely  obliged  foreign  ship-owners  to 
come  to  this  country  and  buy  our  ships,  and  I  think  I  may  say,  without 
fear  of  contradiction,  that  there  is  no  other  production  known  in  this 
country,  or  perhaps  in  any  other,  where  that  thing  has  been  accom 
plished.  The  English  came  here  to  buy  ships,  the  Germans,  the  French, 
and  the  Italians  came  here  to  buy  ships.  And  why?  Simply  because 
they  could  buy  better  ships  and  cheaper  than  they  could  at  home.  And 
yet  the  wages  of  our  operatives  then  were  nearly  double  the  wages  of 
the  same  class  of  operatives  abroad ;  but  we  managed  our  business  so 
as  to  be  able  to  do  that.  Put  us  on  the  same  footing  as  we  were  then, 
and  we  would  be  able  to  compete  again  with  the  rest  of  the  world 
in  ship-building.  It  is  true  that  the  cost  of  operating  ships  is  much 
greater  in  this  country  than  on  the  other  side,  but  I  trust  that  that  will 
eventually  find  its  proper  level.  Wages  were  always  higher  here.  At 
present  we  have  to  pay  firemen  on  board  our  steamers  more  than  twice 
as  much  as  they  are  paid  in  Europe. 

The  CHAIRMAN.  Is  there  any  greater  difference  now  than  there  was 
before  the  war  ? 

Mr. WEBB.  Yes,  sir;  there  is  a  greater  difference.  The  difference  against 
us  is  from  forty  to  fifty  per  cent,  greater  than  it  was  then,  and  it  has  been 
as  high  as  from  sixty  to  seventy.  But  notwithstanding  the  difference  of 
wages,  if  we  could  get  the  materials  of  our  ships  at  about  the  same  as 
they  have  them  on  the  other  side,  we  could  compete  with  them  success 
fully ;  at  any  rate,  I  should  be  willing  to  go  in  and  invest  my  money  in 
ships  and  make  the  trial ;  but  as  it  is  now  it  is  entirely  hopeless.  I  have 
a  place  where  I  built  more  than  one  hundred  ships  within  the  last  thirty 
years,  and,  as  I  said,  the  grass  is  growing  there  now.  I  have  attempted 
to  build  a  ship  recently,  and  I  have  lost  money  by  it. 

The  CHAIRMAN.  Do  you  believe  that  if  the  draw-backs  were  allowed 
to  the  amount  of  the  duties  paid,  the  ship-building  business  of  the 
United  States  would  revive  immediately1? 

Mr.  WEBB.  Yes,  sir ;  immediately* 


NAVIGATION   INTERESTS.  39 

The  CHAIRMAN.  And  that  a  vessel  could  be  built  as  cheaply  here  as 
in  England  ? 

Mr.  WEBB.  Not  quite  so  cheap,  but  the  difference  would  not  be  so 
great  as  that  we  could  not  compete  with  them.  We  might  not  have  so 
good  a  return  for  our  money,  but  the  return  would  be  such  as  would  in 
duce  our  people  to  go  in  and  build  ships,  and  I  think  that  in  a  compara 
tively  small  number  of  years  we  would  regain  the  position  that  we  have 
lost.  We  have  always  had  much  to  contend  with  in  this  country  against 
foreign  ship-building.  One  considerable  item  was  that  a  ship-owner  was 
always  taxed  more  or  less  on  his  shipping  interest  as  personal  property, 
whereas  in  Great  Britain  there  was  no  personal  tax  on  shipping.  A 
ship-owner  in  Great  Britain  does  not  pay  any  personal  tax  on  his  ship 
ping  interest ;  he  pays  income  tax,  but  that  is  all.  We  have  always  had 
much  of  that  to  contend  with,  and  yet  we  competed  with  them  success 
fully.  That  was  due  to  the  fact  that  we  built  better  ships  and  on  better 
models.  The  same  talent  exists  in  the  country  now  j  and  I  do  not  hesi 
tate  to  say  that  if  we  had  the  same  help  from  our  government  that  the 
foreign  steamship  owners  and  builders  have  from  theirs,  we  would  be 
able  to  compete  successfully  with  them  in  building  and  running  steam 
ships.  I  ain  entirely  satisfied  that  we  can  surpass  them  in  the  model  of 
our  ships. 

The  CHAIRMAN.  What  would  be  the  effect  on  the  ship-building  and 
general  navigation  interests  of  the  country  of  amending  the  navigation 
laws,  and  allowing  the  purchase  of  foreign  ships,  while  at  the  same  time 
allowing  a  draw-back  of  duties  on  the  materials  entering  into  ship-build 
ing  in  this  country  ?  What  would  be  the  effect  of  having  the  two  meas 
ures  go  into  operation  at  the  same  time  ? 

Mr.  WEBB.  That  is  a  question  which  I  have  not  deliberated  enough 
upon  to  be  able  to  give  a  satisfactory  answer. 

The  CHAIRMAN.  Would  the  vessels  probably  be  contracted  for  here, 
or  would  they  be  contracted  for  in  England  ? 

Mr.  WEBB.  I  think,  without  giving  the  thing  due  reflection,  that  the 
operation  of  that  would  be  that  the  ship-owners  of  this  country  would 
buy  ships  that  are  already  built  to  such  an  extent  as  they  could,  and 
that  beyond  that  they  would  be  obliged  to  contract  for  new  ships.  1 
think  it  would  take  all  the  ship-building  business  from  this  country,  and 
for  such  a  length  of  time  that  it  would  die  out.  I  think  that  all  the 
ship-yards  of  the  country  would  die  out  under  that  system. 

The  CHAIRMAN.  Do  you  think  that  if  drawbacks  on  materials  were 
allowed  for  three  years,  and  that  then  the  navigation  laws  were  amended 
so  as  to  admit  foreign  vessels  to  register,  the  American  ship-builders 
would  be  in  a  condition  to  compete  with  foreign  ship-builders  $ 

Mr.  WEBB.  It  would  take  a  much  longer  time  than  two  or  three  years. 
Time  soon  runs  away.  It  would  take  a  much  longer  time  than  that. 
The  navigation  laws  might  have  been  abrogated  any  time  between  1850 
and  I860  without  injury  to  the  American  ship-builders.  Then  we  had 
enough  of  the  field  to  ourselves  to  have  enabled  us  to  have  continued 
to  compete  with  foreign  ship-builders.  Our  labor  was  at  a  moderate 
rate,  and  everything  was  going  on  successfully.  All  kinds  of  materials 
for  building  ships  could  be  obtained  then  at  much  less  rates  than  they 
can  be  now.  The  business  was  extensive,  and  the  supply  was  very  great. 
Now  the  supply  is  limited  and  irregular. 

Mr.  WELLS.  I  understood  you  to  say  that  American-built  ships  were 
superior  to  foreign-built  ships  ? 

Mr.  WEBB.  Yes,  sir. 

Mr.  WELLS.  Do  you  not  believe  that  American  merchants  would 


40  NAVIGATION   INTERESTS. 

give  the  preference  to  American-built  ships  sufficiently  to  overcome  the 
difference  that  you  speak  of? 

Mr.  WEBB.  Yes,  sir ;  an  American  ship-owner  will  give  more  money 
for  a  first-class  American-built  ship  than  he  will  for  any  other  ship.  He 
would  be  induced  to  do  that  because  the  underwriters  of  this  country 
would  certainly  give  the  preference  to  American-built  ships. 

The  CHAIRMAN.  I  suppose  that  they  have  been  gaining  on  us  in  that 
regard  in  Great  Britain  while  our  business  has  been  depressed  ? 

Mr.  WEBB.  Certainly ;  not  only  in  one  direction,  but  in  all  the  ramifi 
cations  of  the  shipping  interest  they  have  been  gaining  ground  upon  us 
until  they  have  got  the  field  pretty  nearly  to  themselves,  and  if  the  thing 
runs  on  as  at  present  for  one  or  two  years  longer,  not  only  the  ship-yards 
of  this  country  will  be  all  closed,  but  the  skilled  operatives  will  have  gone 
away  or  left  the  business,  and  we  will  have  no  men  to  build  our  ships. 
For  the  last  ship  that  I  built,  last  year,  I  found  more  difficulty  in  getting 
skilled  operatives  to  work  upon  her  than  upon  any  vessel  I  ever  built. 

Mr.  MORRELL.  Do  you  believe  that  if  the  Alabama,  and  the  other 
confederate  privateers,  had  not  been  permitted  to  prey  upon  American 
commerce  we  would  have  been  able  to  have  held  our  supremacy,  not 
withstanding  the  warj? 

Mr.  WEBB.  No,  sir ;  I  do  not  think  we  would.  These  vessels,  of 
course,  aided  very  much  in  injuring  our  commerce ;  but  the  high  price  of 
labor  and  of  materials  has  been  perhaps  the  principal  drawback.  I  do  not 
expect  that  labor  will  ever  come  to  the  level  that  it  was  at  many  years 
ago  5  but  it  will  fall  sufficiently,  I  think,  to  enable  us  to  build  ships  if 
we  can  buy  our  materials  cheap. 

Mr.  NELSON,  speaking  for  the  Ship-owners'  Association,  asserted  that 
it  represented  three-fourths  of  the  tonnage  visiting  the  port  of  New  York, 
and  that  that  fact  could  be  proved  if  Mr.  Webb  denied  it.  He  presumed 
that  Mr.  Webb  was  not  putting  a  stigma  upon  that  association. 

Mr.  WEBB  said  he  had  no  desire  of  that  kind.  He  had  given  what 
was  his  impression,  and  he  still  thought  that  the  older  ship-owners  of 
New  York,  who  had  had  the  most  experience  in  the  business,  were  not 
represented  by  the  Ship-owners'  Association. 

Mr.  WESTERVELT  next  addressed  the  committee.  He  expressed  his 
belief  that  very  much  of  the  trouble  was  owing  to  the  fact  that  the  Amer 
ican  standard  of  mechanical  labor  was  very  greatly  reduced,  and  that 
we  were  paying  very  much  more  for  the  amount  of  labor  performed  than 
we  used  to  do  in  former  years.  He  thought  that  the  ship-builders  had 
neglected  their  own  interests.  Twenty  years  ago  it  had  been  the  custom 
for  each  ship-builder  to  educate  a  certain  number  of  boys  to  the  business, 
and  to  make  them  familiar  with  the  mysteries  of  ship-building ;  but  he 
believed  that  there  had  been  no  apprentices  taken  for  many  years  past. 
The  result  was  that  the  mechanics  employed  by  ship-builders  now  knew 
very  little  about  their  business,  and  that  ships  cost  a  great  deal  more  to 
build  than  they  used  to  cost.  Probably  the  bosses  themselves  had  not 
kept  up  with  the  times,  and  he  did  not  think  that  they  had.  He  thought, 
however,  that  the  days  of  wooden  ships  were  ended.  He  believed  that 
iron  ships  possessed  all  the  qualities  that  wooden  ships  did,  and  possessed 
besides  many  qualities  that  wooden  ships  did  not.  In  almost  all  respects 
iron  ships  were  superior  to  wooden  ones,  and  it  was  no  longer  worth  while 
to  talk  about  their  respective  merits.  There  had  been  very  little  expe 
rience  in  the  building  of  iron  ships  in  New  York.  He  understood  that  in 
other  parts  of  the  country  iron  ships  could  be  built  almost  as  cheaply  as 
they  could  be  abroad.  He  thought  that  we  might  be  able  ultimately 
to  compete  with  foreign  ship-builders,  but  not  for  some  years  j  because 


NAVIGATION   INTERESTS.  41 

the  foreigners  had  got  men  educated  to  the  business,  and  Americans 
were  not  so  well  skilled  in  the  art  of  iron  ship-building  as  the  English 
were,  and  that,  for  the  best  of  all  reasons,  because  very  few  iron  ships 
had  been  built  here  in  comparison  with  the  immense  number  of  iron 
ships  built  in  England.  There  were  very  few  establishments  in  the 
country  in  which  iron  ships  could  be  built.  He  believed  that  it  cost 
more  to  build  ships  in  New  York  than  in  any  other  place  in  the  world. 
There  had  been  a  time  when  New  York  built  ships  which  were  equal 
and  superior  to  the  ships  of  any  part  of  the  world ;  but  now  they  were 
turning  out  ships  in  England  which,  in  his  opinion,  were  equal  to  any 
thing  that  New  York  had  ever  done  in  that  way. 

The  CHAIRMAN.  If  you  obtained  the  materials  free  of  duty,  could  you 
construct  ships  in  competition  with  the  English  I 

Mr.  WESTERVELT.  I  cannot  speak  of  iron  vessels,  because  I  am  not 
conversant  with  them,  and  to  build  wooden  ships  I  think  would  be  labor 
lost. 

The  CHAIRMAN.  How  much  higher  are  the  wages  that  are  now  paid 
to  ship-carpenters  than  they  were  before  the  war  ? 

Mr.  WESTERVELT.  Before  the  war  we  paid  $2  25  per  day ;  we  are  now 
paying  $4.  At  that  time  a  first-class  ship  cost  $55  a  ton  to  build  j  to 
day  it  costs  $110  a  ton. 

Mr.  WELLS.  What  proportion  of  the  expense  of  building  wooden  ships 
is  in  the  labor  ? 

Mr.  WESTERVELT.  I  can  hardly  state  that,  for  I  have  built  no  ships 
for  several  years.  I  have  got  the  cost  of  ships  recently  built  in  Boston, 
and  I  am  told  that  they  cost  about  $110  a  ton.  I  have  not  built  ships 
for  several  years. 

Mr.  MORRELL.  Would  the  cost  per  ton  for  a  ship  of  eight  hundred 
tons  be  the  same  as  for  a  ship  of  sixteen  hundred  tons! 

Mr.  WESTERVELT.  The  cost  per  ton  would  be  rather  greater  in  the 
small  ship  than  in  the  large  one.  As  a  ship  increases  in  size  the  rate 
per  ton  would  be  less.  I  am  speaking  about  ships  of  fifteen  hundred 
tons  costing  about  that  much  per  ton. 

Mr.  WILLIAM  H.  WEBB  was  again  called  before  the  committee. 

Mr.  CALKIN.  As  Mr.  Webb  has  had  experience  in  running  steamers 
to  Europe,  I  desire  to  ask  him  whether,  if  Congress  should  pass  a  law 
relieving  the  shipping  interest  so  that  iron  steamers  could  be  built  as 
cheap  in  this  country  as  abroad,  and  if  Congress  should  subsidize  them 
to  a  small  amount,  could  a  line  of  steamers  then  compete  with  the 
present  European  lines  and  pay  a  fair  dividend  to  the  owners'? 

Mr.  WEBB.  I  have  had  some  experience  in  running  steamships  in 
different  directions — in  the  past  year  to  Europe.  Judging  from  that 
experience,  I  should  say  that  if  Congress  should  pass  a  law  relieving  the 
construction  of  steamships  from  the  onerous  duties  now  paid,  and  should 
also  grant  a  liberal  subsidy — I  cannot  say  a  small  subsidy,  but  a  liberal 
subsidy,  no  more  than  European  governments  have  heretofore  granted 
to  their  ship-owners — we  could  run  steamships  and  compete  successfully 
with  any  of  the  foreign  lines.  , 

Mr.  CALKIN.  In  reference  to  immigration,  do  you  know  whether  the) 
immigrant  coming  to  this  country  usually  prefers  to  come  in  an  Ameri-j 
can  ship  and  under  the  American  tlag  rather  than  in  a  foreign  ship  f  j 

Mr.  WEBB.  Heretofore  they  gave  a  decided  preference  to  American} 
ships ;  but  from  the  fact  that  American  ships  have  almost  died  out, 
that  preference,  as  a  matter  of  course,  has  also  died  out.    I  have  sent 
two  ships  last  year,  and  the  preference  was  given  to  them  simply  because 
they  were  American  ships.    I  do  not  mean  to  say  by  that  that  the  pref- 


42  NAVIGATION   INTERESTS. 

erence  has  been  given  to  them  over  any  foreign,  ships,  but  I  mean  over 
foreign  ships  of  the  same  class.  And  I  know  from  my  recent  traveling 
in  Europe  that  a  sympathy  exists  there,  especially  among  emigrants,  in 
favor  of  American  ships,  and  a  desire  that  American  ships  should  be 
put  into  the  business  again. 

Mr.  FRANCIS  COBB,  of  Kockland,  Maine,  largely  interested  in  ship 
building,  next  appeared  before  the  committee  and  was  inquired  of  in 
reference  to  the  wages  paid  to  ship-carpenters.  He  said  that  ship-car 
penters  in  Maine  were  now  being  paid  from  $2  50  to  $3  a  day. 

The  CHAIRMAN.  How  do  their  wages  now  correspond  with  what  they 
were  before  the  war  *? 

Mr.  COBB.  There  has  not  been  that  advance  with  that  class  of  labor 
that  there  has  been  with  other  classes,  for*  the  very  reason  that  there 
has  been  less  ship-building  than  there  was  formerly.  We  used  to  get 
men  at  perhaps  half  a  dollar  a  day  less  before  the  war.  There  was  one 
statement  made  here  to-day  in  reference  to  the  cost  of  ships,  which  I  de 
sire  to  correct.  It  has  been  stated  that  first-class  ships  cost,  in  New 
York,  at  the  rate  of  8110  per  ton.  I  can  say  that  first-class  ships  are 
built  in  Maine  (nine-year  ships  of  the  very  first  class  of  oak  and  pine) 
at  $55  per  ton.  They  can  be  fitted  out  ready  for  sea,  with  all  their  fit 
tings,  at  from  $70  to  $75  per  ton. 

The  CHAIRMAN.  What  did  the  same  class  of  ships  cost  before  the 
war? 

Mr.  COBB.  The  cost  of  such  ships  before  the  war  was  about  $40  per 
ton,  without  spars.  Similar  ships  are  now  being  built  at  from  $50  to 
$55  per  ton.  I  saw  a  contract  recently  for  a  large  ship  at  $55  per  ton. 
That  is  about  thirty  or  forty  per  cent,  more  than  they  were  before  the 
war.  That  is  the  price  that  ship-builders  are  selling  them  at,  and  I  sup 
pose  they  would  not  build  them  without  making  some  profit  on  them. 

Mr.  E.  P.  BUCK,  of  New  York,  next  addressed  the  committee.  He  said 
he  rose  principally  to  corroborate  what  Mr.  Cobb  had  just  said  relating 
to  the  present  cost  of  ships.  He  had  just  sent  to  sea  a  new  ship  which 
had  cost,  coppered,  $73  per  ton,  and  he  should  launch  another  of  one 
thousand  four  hundred  tons  within  a  week,  which  would  cost  $75  a  ton 
without  copper.  She  is  more  of  a  white-oak  ship,  and  cost  a  little  more 
money  on  that  account.  She  is  rigged  with  wire  rigging,  which  is  a 
little  cheaper  than  hemp  rigging,  although  I  am  inclined  to  think  it  is 
not  quite  so  good.  As  to  the  remedy  for  the  present  evil,  it  has  puzzled 
my  head  for  the  last  fifteen  years.  I  do  not  know  where  the  remedy  is. 
Most  certainly  we  cannot  throw  open  our  whole  coastwise  trade  to  for 
eign  ships  unless  we  have  free  trade  in  everything,  and  that  we  cannot 
afford  to  have  under  the  present  circumstances.  I  think  that  if  the 
matter  is  sifted  down  it  will  be  found  that  most  of  the  men  who  want 
free  trade  in  ships  are  men  who  are  directly  or  indirectly  interested  in 
ships  built  in  the  provinces,  and  who  would  like  to  get  those  ships  regis 
tered  here  so  as  to  put  them  into  the  coasting  trade.  The  very  moment 
that  foreign  ships  are  admitted  to  registration  here  those  ships  will  do 
all  our  coasting  trade  instead  of  the  ships  that  are  built  in  Maine.  It- 
will  produce  what  Mr.  Webb  has  described,  a  dearth  of  mechanics,  and 
we  will  have  no  ship-builders  in  time  of  war.  It  will  also  make  our 
sailors  extinct,  because  they  will  not  go  to  sea  in  foreign  ships.  I  have 
known  American  captains,  during  the  war,  who  were  so  loyal  that  they 
would  rather  stay  at  home  than  go  to  sea  in  foreign  ships  that  were  of 
fered  them.  I  think  that  if  we  had  a  reduction  of  the  duties  on  all 
the  materials  going  into  the  construction  of  ships,  whether  the  ma 
terials  be  American  or  foreign,  and  if  we  could  also  be  freed  from  the 


NAVIGATION   INTERESTS.  43 

taxation  on  ships,  as  is  the  case,  I  understand,  in  other  countries,  we 
could  then  afford  to  build  our  ships  in  this  country  and  to  compete  with 
any  other  nation.  I  do  not  believe  that  there  is  any  more  ingenuity  in 
Glasgow  or  any  other  ship-building  place  than  there  is  in  this  country ; 
nor  do  I  believe  that  there  is  any  more  energy  among  the  foreigners 
than  among  Americans.  I  think  that  if  we  are  put  upon  the  same  foot 
ing  we  will  be  able  to  compete  on  the  ocean  with  the  rest  of  the  world. 
We  have  a  greater  ocean  front  than  .'iny  other  nation,  and  it  would  be  a 
terrible  disgrace  if  we  allowed  ourselves  to  be  driven  from  the  ocean. 
It  has  been  wisely  said  that  the  nation  which  controls  the  ocean  controls 
the  world;  and  since  we  have  the  Pacific  and  the  Atlantic,  we  are  des 
tined  to  do  that.  That  is  what  we  will  do  if  we  have  sufficient  en 
couragement  from  the  government,  or  rather  if  the  government  with 
draws  its  restrictions  upon  us.  The  tariff  renders  the  cost  of  materials 
so  great  that  we  cannot  build  ships.  I  do  not  think  that  the  ship-own 
ers  of  New  York  are  represented  extensively  in  the  Ship-owners'  Associa 
tion.  I  am  free  to  say  that  I  believe  that  if  you  could  call  together  the 
men  who  have  been  twenty  or  forty  years  in  the  ship-owning  business  in 
this  city,  you  would  not  find  the  majority  of  them  ready  to  throw  the 
business  open  to  foreigners  and  to  have  oar  ships  purchased  abroad.  I 
saw  that  it  was  stated  here  yesterday  that  British  vessels  are  insured  at 
two  and  a  half  per  cent.,  while  the  rates  on  our  ships  are  from  eight  to 
nine  per  cent.  I  have  made  inquiry  this  morning  at  the  office  of  the 
Atlantic  Insurance  Company,  and  I  was  informed  that  insurance  is  just 
as  cheap  on  an  American  vessel  as  on  a  foreign  vessel. 

The  CHAIRMAN.  The  statement  was  that  the  low  rate  of  insurance  is 
only  charged  upon  iron  ships  abroad,  and  the  high  rate  of  insurance 
upon  wooden  ships. 

Mr.  BUCK.  They  may  insure  on  what  they  like  abroad,  but  we  want 
our  insurance  done  at  home.  They  may  insure  iron  ships  cheaper  there ; 
but  I  do  not  believe  that  they  insure  cargoes  any  cheaper  in  an  iron  ship 
than  they  do  in  a  ship  built  by  Mr.  Webb.  Just  think  how  the  balance 
of  trade  is  against  us.  If  we  bought  our  ships  abroad,  paying  gold  for 
them  at  thirty  per  cent,  premium,  we  would  be  impoverished  so  speedily 
that  we  would  never  be  able  to  get  back  to  specie  payments. 

The  committee  adjourned  till  to-morrow,  IGth  October. 

NEW  YOUK,  October  16, 1869. 

The  committee  met. 

Present,  the  Chairman  and  Messrs.  Wells,  Holman,  and  Calkins. 

Mr.  A.  A.  Low  appeared  before  the  committee. 

The  CHAIRMAN.  The  committee  would  like  to  hear  from  you  in  regard 
to  the  general  policy  of  building  our  ships  at  home  or  buying  them 
abroad,  as  we  understand  that  you  are  a  ship-owner  and  importer.  What 
should  be  the  policy  of  the  government  to  protect  and  foster  our  ship 
ping  interest  and  to  bring  it  back  to  the  standard  position  it  held  before 
the  war? 

Mr.  Low.  Individually,  I  have  always  been  in  favor  of  protecting 
Amesican  interests.  I  have  been  inclined  to  sustain  our  own  architects, 
builders,  and  mechanics,  and  to  rear  our  own  sailors  and  advance  the 
interests  of  commerce  generally  in  that  direction.  Most  of  our  laws  are 
formed  with  a  view  to  protecting  our  various  industries;  but  the  laws 
which  protect  our  general  industry  bear  oppressively  upon  this  par 
ticular  interest,  so  that  the  laws  which  are  designed  for  the  protection 
of  American  industry  are  really  a  burden  upon  our  shipping  industry. 

The  CHAIRMAN.  We  would  like  you  to  give  the  committee  your  views 


44  NAVIGATION   INTERESTS. 

as  to  the  causes  which  have  operated  to  produce  the  present  depressed 
condition  of  affairs  in  our  shipping  interests. 

Mr.  Low.  In  the  first  instance  we  have  a  depreciated  currency.  1 
think  that  militates  against  the  building  of  ships.  We  have  very 'high 
prices  of  labor,  and  high  prices  of  all  the  materials  that  enter  into  the 
construction  of  ships.  These  prices  are  increased  by  the  laws  which 
are  designed  to  protect  other  branches  of  industry,  and  of  course  they 
all  tend  to  increase  the  cost  of  the  ships  in  the  first  instance,  and  the 
cost  of  the  sailing  of  the  ship  after  she  is  built.  I  think  that  the  Ameri 
can  shipping  interest  suffered  before  the  war  came  on.  The  California 
trade  had  caused  the  building  of  a  vast  number  of  ships,  especially  of 
the  class  known  as  clipper  ships.  Then  the  steam  lines  began  to  multi 
ply  and  to  take  the  valuable  traffic  on  the  Atlantic.  That  forced  sail 
ing  ships  upon  distant  courses,  and  the  freight  was  very  low  for  several 
years  before  the  war — so  low  as  to  be  wholly  unremunerative.  When 
the  war  came  on,  the  privateers  burned  our  vessels  and  added  to  the 
cost  of  sailing  by  increasing  the  rates  of  insurance  upon  our  ships.  Our 
ships  were  destroyed,  and  there  is  no  motive  to  replace  them  at  the 
increased  cost.  Nor  do  I  see  how  we  can  recommence  building  ships 
unless  the  ship-building  interest  is  relieved  from  the  taxes  put  upon  all 
the  materials  that  enter  into  the  construction  of  vessels.  My  own  belief 
is  that  the  policy  of  England,  in  subsidizing  lines  of  steamers  to  the 
various  ports  of  the  world,  has  given  her  a  prestige  which  is  almost 
insuperable.  Her  mechanics  have  been  trained  in  the  construction  of 
iron  ships  and  of  all  the  machinery  requisite  for  the  purpose,  and  it 
would  seem  to  me  that  it  would  take  our  mechanics  a  long  time  to  get 
into  a  condition  to  compete  with  England.  We  have  just  now  but  one 
important  steam  line,  and  that  is  the  Pacific  Mail  Steamship  line,  and  it 
seems  to  me  that  all  the  subsidies  which  our  government  has  ever  given 
to  all  the  steam  Xnes  that  we  have  ever  had  would  not  be  equal  to  the 
amount  of  loss  inflicted  upon  that  single  remaining  line  by  the  Pacific 
railway.  We  gave  fifty  or  sixty  million  dollars,  and  lands  extending  for 
miles  on  either  side,  to  that  railroad — an  internal  line  of  communication 
to  the  Pacific,  which  has  cut  off  all  the  support  that  hitherto  belonged 
to  the  Pacific  Mail  Steamship  line — so  that  during  the  little  time  that 
that  Pacific  railroad  line  has  been  opened  that  single  line  of  steamers  must 
have  suffered  an  injury  of  from  six  to  eight  million  dollars.  The  capital 
of  the  Pacific  Mail  Steamship  line  is  twenty  million  dollars.  Two  years 
ago  its  stock  was  worth  from  one  hundred  and  forty  to  one  hundred  and 
fifty ;  now  it  is  down  to  fifty-six.  It  has  fallen  within  a  year  from  one 
hundred  and  twenty-five  down  to  fifty-six,  which  would  represent  about 
fourteen  million  dollars.  I  do  not  know  why  the  Pacific  Mail  Steam 
ship  line  would  not  be  as  good  property  to-day  as  it  was  before  if  Con 
gress  had  not  given  fifty  or  sixty  million  dollars,  and  immense  quantities 
of  land,  to  that  line  of  railroad,  and  so  built  it  up  at  the  expense  of  the 
only  single  line  of  steamers  remaining  to  this  country.  There  does  not 
seem  to  be  a  law  upon  our  statute  books  which  does  not  inflict  an  injury 
upon  our  commercial  interests.  Then,  again,  the  policy  of  England  in 
reference  to  subsidies  has  been  different  from  our  own.  The  English 
have  engrossed  the  traffic  from  almost  every  country.  They  have  man 
ufactures  in  abundance  to  supply  the  distant  markets.  They  have  their 
distant  colonies  to  incite  them  to  effort.  Occupying  an  insular  position 
i  as  they  do,  there  is  not  a  man  in  England  that  does  not  appreciate  the 
importance  of  commerce  j  so  that  all  the  English  laws  are  for  the  benefit 
of  commerce.  Our  country  is  so  large,  and  the  opportunities  for  the 
employment  of  capital  are  so  diverse,  that  our  legislators  do  not  give 


NAVIGATION    INTERESTS.  45 

that  attention  to  commerce  which  the  statesmen  of  England  do.  I  think 
the  English  statesmen  have  been  wiser  than  ourselves  in  subsidizing 
largely^  in  the  first  instance,  all  their  ocean  lines,  until  they  have  trained 
their  mechanics  perfectly  in  the  creation  of  steamships.  There  is  a  very 
interesting  article  in  the  Times  this  morning  which  shows  what  the 
English  are  doing  in  that  line.  It  is  easier  to  explain  the  causes  of  our 
decline  than  it  is  to  suggest  a  remedy.  If  there  is  any  way  of  relieving 
the  ship-building  interest  from  the  duties  imposed  upon  it  for  the  pro 
tection  of  other  American  industries,  that  would  certainly  be  a  step  in 
the  right  direction.  If  a  subsidy  could  be  given  to  ocean  steamers  that 
would  be  an  offset  to  the  extra  cost  of  building  our  steamers,  that  would 
be  another  mode  of  meeting  the  difficulty.  My  own  impression  has 
been  that  large  subsidies  should  be  given  as  an  inducement,  and  that 
those  subsidies,  while  they  would  cost  the  government  something  in  the 
beginning,  would  cost  the  government  nothing  in  the  end,  because  the 
materials  used  in  the  construction  of  ships  would  pay  back  in  taxes  to 
the  government  whatever  is  paid  in  subsidies.  At  present  we  build  no 
steamers — we  can  build  none.  We  cannot  build  steamers,  I  suppose, 
because  iron  has  taken  the  place  of  wood.  We  abound  in  wood  but  not 
in  cheap  iron.  The  screw  steamers  have  taken  the  place  of  the  side- 
wheelers,  and  wooden  vessels  cannot  bear  the  action  of  the  ocean  upon 
the  screw ;  so  that  we  are  inevitably  driven  upon  iron  in  the  construc 
tion  of  our  ocean  steamers,  and  we  have  not  the  cheap  iron  to  compete 
with  the  cheap  iron  of  England  and  with  the  skilled  labor  of  England. 
I  see  that  Mr.  Webb  and  others  express  great  confidence  in  the  ability 
of  our  mechanics  to  compete  with  English  laborers.  I  must  say  that  I 
have  not  that  same  confidence  in  the  superiority  of  our  workmen.  They 
work  a  shorter  time  than  the  English  workmen  do,  and  demoralization 
seems  to  have  extended  into  the  department  of  labor  to  a  greater  degree 
perhaps  than  to  almost  any  other.  Our  labor  generally  is  very  much 
demoralized,  and  any  one  who  undertakes  to  build  a  house  or  anything 
else  will  soon  find  it  out.  I  have  no  doubt  that  we  can  command  as 
skillful  workmen  as  any  in  the  world,  but  that  we  can  command  better 
workmen  than  are  in  England  I  do  not  believe.  Certainly  the  ships 
that  they  send  here  are  superior  to  any  that  have  ever  been  made 
hitherto.  They  are  excellent  in  model  and  in  workmanship.  Any  one 
who  has  made  a  passage  across  the  Atlantic  in  one  of  their  ocean  steam 
ers  will  be  satisfied  of  their  stability  and  excellence  as  well  as  of  their 
great  speed.  It  seems  to  me  that  the  English  have  attained  to  the 
utmost  excellence  in  that  line,  and  that  although  our  mechanics  may  be 
of  the  best  order,  we  should  be  weak  and  foolish  to  think  that  we  can 
excel  the  English  in  any  of  those  respects.  We  should  be  put  to  our 
mettle  to  hold  our  own  with  them  until  we  have  had  a  good  many  years 
to  study  the  art  and  to  practice  it. 

The  CHAIRMAN.  Can  you  give  us  any  information  as  to  the  amount 
of  subsidies  paid  by  our  government  and  by  the  English  government? 

Mr.  Low.  I  cannot  give  you  the  particulars  of  the  different  subsidies 
paid  by  Great  Britain  or  by  this  country.  I  only  know  that  the  English 
have  adhered  to  the  policy  of  sustaining  their  ocean  lines  of  steamers 
by  sufficient  subsidies.  They  have  never  shrunk  from  the  necessity  of 
paying  whatever  was  needed  to  continue  a  line  to  distant  countries.  For 
instance,  if  a  line  of  steamers  were  formed  to  Australia  and  were  unsuc 
cessful,  and  if  it  were  found  that  a  larger  subsidy  was  necessary  to  continue 
it,  they  would  liberally  give  what  was  sufficient  for  the  purpose.  In  a 
word,  the  English  have  always,  in  peace  and  in  war,  manifested  a  deter 
mination  to  hold  the  supremacy  on  the  ocean ;  and  the  supremacy  which. 


46  NAVIGATION   INTERESTS. 

they  acquired  by  arms  in  war  they  have  in  peace  acquired  by  subsidies. 
They  have,  deliberately  and  intentionally,  driven  the  Americans  from  the 
ocean  by  paying  subsidies  which  they  knew  our  Congress  would  not  pay. 
I  believe  it  has  been  the  deliberate  purpose  on  the  part  of  En  gland  to 
maintain  her  supremacy  on  the  ocean  by  paying  larger  subsidies  than 
any  other  nation  as  long  as  subsidies  were  necessary  to  preserve  their 
control.  1  believe  that  when  the  Collins  line  was  running,  the  subsidy 
to  the  Cunard  line  was  renewed  for  the  express  purpose  of  enabling  it 
to  run  off  the  Collins  line.  It  was  renewed  several  years  before  the 
expiration  of  the  subsidy  already  granted,  so  that  the  Cunard  line  might 
enter  upon  contracts  for  new  ships ;  and  a  committee  of  the  English 
Parliament  similar  to  this  committee  was  employed  to  make  the  most 
minute  investigation  into  the  matter.  It  was  after  the  most  careful 
inquiry  by  that  committee  that  the  contract  with  Cunard  was  renewed, 
for  the  express  purpose  of  enabling  that  line  to  run  the  American  steam 
ers  from  the  ocean  ;  and  they  have  driven  us  from  the  ocean  by  that 
policy  just  as  effectually  as  they  ever  did  drive  an  enemy  from  the  ocean 
by  their  guns. 

Mr.  WELLS.  From  your  experience  of  the  mode  of  conducting  steam 
ship  lines,  do  you  not  think  that  the  English  run  their  lines  at  much 
less  expense  than  the  Americans,  and  that  if  Collins  had  run  his  line  at 
the  same  expense  as  Cunard  it  could  have  been  sustained? 

Mr.  Low.  The  English  protect  their  ships,  but  we  burden  ours.  We 
burden  every  supply  that  goes  on  board  our  ships.  Every  pound  of  tea 
and  every  pound  of  sugar  is  burdened  with  heavy  tariff  charges.  The 
English  exempt  the  stores  that  are  put  on  board  their  ships  from  such 
charges.  In  every  way  they  increase  their  shipping  interests,  and  in 
every  way  we  depress  ours.  In  the  time  of  the  war  the  shipping  inter 
est  was  the  only  interest  that  suffered.  The  privateers  burnt  our  ships 
or  subjected  them  to  heavy  rates  of  insurance  j  and  so  far  as  foreign  in 
surance  companies  were  concerned,  they  turned  their  faces  against  in 
suring  our  ships. 

The  CHAIRMAN.  In  your  opinion  are  ship-owners  generally  in  favor  of 
amending  the  navigation  laws,  so  as  to  allow  the  purchase  of  ships  abroad 
and  nationalieing  them  here*? 

Mr.  Low.  I  dare  say  that  those  who  are  not  fully  American  in  their 
feeling  would  be  in  favor  of  bringing  foreign-built  ships  here,  and  of 
putting  them  under  the  American  flag ;  but  I,  individually,  would  pre 
fer  to  see  our  mechanics  encouraged  as  hitherto,  to  build  those  vessels. 
I  think  that  we  should  be  relieved  from  the  burdens  which  now  stand 
in  the  way  of  ship-building,  so  that  we  shall  not  only  have  ships  to  sail, 
but  men  to  build  them.  Still,  it  would  be  better  to  go  abroad  and  buy 
our  ships  and  put  them  under  the  American  flag  rather  than  to  be  ruled 
out  off  the  sea  altogether,  as  we  now  are.  The  shipping  interest  has 
been  so  unprofitable  in  this  part  of  the  country  that  capital  has  been 
diverted  from  that  branch  of  commerce  to  more  inviting  fields. 

The  CHAIRMAN.  In  your  opinion,  if  the  American  ship-builders  and 
ship-owners  were  put  upon  the  same  footing  and  offered  the  same  en 
couragement  as  the  ship-builders  and  ship-owners  of  Great  Britain, 
would  we  be  able  to  compete  with  them  ? 

Mr.  Low.  If  it  were  possible  to  put  them  on  the  same  footing,  of 
course  there  is  an  aptitude  among  our  people  in  the  pursuit  both  of 
building  and  sailing  vessels  that  would  soon  manifest  itself,  unques 
tionably. 

Mr.  WELLS.  In  other  words,  you  think  that  if  drawbacks  were 
allowed  on  the  materials  entering  into  ship-building  in  this  country, 


NAVIGATION    INTERESTS.  47 

and  if  the  disabilities  in  reference  to  buying  ships  abroad  and  putting 
them  under  the  American  flag  were  removed,  our  commerce  would  re 
vive  f 

Mr.  Low.  I  have  said  that  there  are  many  things  in  the  way  of  the 
restoration  of  our  commerce,  and  one  of  the  first  difficulties  is  the  con 
dition  of  the  currency.  That  aggravates  everything. 

Mr.  WELLS.  That  cannot  be  remedied  for  the  time  being.  But  as  to 
the  more  immediate  relief,  what  do  you  think  would  be  its  result  ? 

Mr.  Low.  Our  mechanics  say  that  if  the  materials  that  enter  into  the 
construction  of  ships  were  relieved  from  taxes  they  could  go  to  work, 
and  I  have  no  doubt  that  that  is  so.  I  have  no  doubt  that  we  have  iron 
equal  to  any  other  for  the  construction  of  ships,  and  that  we  have  the 
skill  to  construct  them.  We  have  not  the  experience  5  but  I  have  no 
doubt  that  that  will  come. 

Mr.  WELLS.  And  we  have  national  pride,  too. 

Mr.  Low.  We  have  the  pride. 

Mr.  WELLS.  That,  together  with  the  subsidies,  you  think  would  prob 
ably  be  the  only  policy  to  relieve  us  for  the  time  ? 

Mr.  Low.  Yes,  sir. 

The  CHAIRMAN.  You  speak  of  the  currency  being  an  impediment. 
Where  we  compete  with  England  upon  gold  prices,  would  the  condition 
of  our  currency  make  any  real  difference? 

Mr.  Low.  Inasmuch  as  the  traffic  is  carried  on  in  gold  prices,  we 
would  be  on  a  par  with  them  -3  we  should  have  the  same  remuneration 
as  they  have. 

The  CHAIRMAN.  Then,  really,  what  effect  does  the  currency  have  on 
the  question  ? 

Mr.  Low.  It  is  the  parent  of  a  great  deal  of  demoralization.  Every 
thing  is  high — rents,  and  labor,  and  materials.  We  have  exaggerated 
prices  for  everything. 

The  CHAIRMAN.  Above  the  difference  between  gold  and  currency  ? 

Mr.  Low.  Apparently.  Labor  is  certainly  out  of  proportion  to  the 
difference  between  gold  and  currency.  Where  we  used  to  pay  eleven 
dollars  a  month  to  sailors,  we  now  pay  twenty-five  dollars.  That  exhibits 
more  than  the  difference  between  gold  and  currency.  I  speak  of  the 
sailors  in  the  China  trade,  where  the  rates  are  lower  than  in  the  Euro 
pean  trade.  We  used  to  pay  eleven  dollars  where  we  now  pay  twenty- 
five  dollars.  Commerce  now  is  threatened  in  another  way.  The  trade 
that  we  have  hitherto  done  in  ships  to  China  shall  be  lost  to  us  through 
this  Pacific  railroad,  after  awhile.  The  teas  that  now  come  by  ships 
may  come  from  San  Francisco  over  the  road ;  and  I  presume  they  will 
do  so  before  long.  Then,  again,  we  are  threatened  through  the  Suez 
Canal,  and  through  the  competition  of  steamers  with  sailing  vessels.  I 
understand  that  the  English  are  already  making  inquiries  here  in  rela 
tion  to  the  cost  of  transportation  of  teas  by  steam  from  China ;  so  that 
the  commerce  which  we  have  carried  on  with  the  East  is  threatened 
the  whole  way  by  the  land  route  across  the  continent,  and  by  the  steam 
route  through  the  Suez  Canal.  I  do  not,  myself,  believe  in  the  trans 
portation  of  teas  by  so  expensive  a  route.  At  present  there  is  no  profit 
in  the  importation  of  teas,  and  there  has  not  been  for  two  years  past. 
And  inasmuch  as  there  is  no  profit  with  the  inconsiderable  cost  of 
bringing  them  by  sailing  vessels,  there  would  be  no  warrant  for  the 
higher  cost  in  bringing  them  by  steam  vessels,  as  steamers  cannot  trans 
port  freights  so  cheaply  as  sailing  vessels  can. 

The  CHAIRMAN.  I  understand  you/tthen,  to  be  in  favor  of  an  attempt 


48  NAVIGATION   INTERESTS. 

to  restore  our  shipping  by  building  it  at  home  rather  than  by  buying  it 
abroad  ? 

Mr.  Low.  Certainly,  sir;  my  feeling  is  to  have  our  ship-yards  revived. 
The  skill  acquired  there  would  make  us  independent  of  foreign  labor. 
That  has  always  been  my  feeling.  I  always  had  a  desire  to  see  our  own 
ship-yards  restored  to  their  usefulness,  and  to  see  men  trained  up  in  this 
country  so  to  make  us  independent  of  foreign  skill  and  labor  in  that 
regard.  I  suppose  that  it  is  the  natural  feeling  of  every  one  who  has  an 
interest  in  American  commerce  to  see  American  industry  thrive  in  that 
direction.  Still,  I  think  it  would  be  better  to  resort  to  England  for 
steamers,  rather  than  be  ruled  out  entirely  from  the  benefits  of  a  very 
profitable  pursuit. 

The  CHAIRMAN.  What  effect  do  you  think  it  would  have  on  our  com 
mercial  interests  if  we  were  to  amend  our  navigation  laws  and  go 
abroad  to  buy  our  vessels  ? 

Mr.  Low.  It  seems  to  me  that  at  present  the  English  can  build  much 
more  cheaply  than  ourselves,  and  that  that  policy  would  put  off  the  time 
when  we  should  be  independent  of  other  nations.  It  would  be  pursuing 
a  course  in  reference  to  that  particular  industry  of  ship-building  at  vari 
ance  with  that  which  is  adopted  in  reference  to  all  other  American  inter 
ests.  In  regard  to  all  other  internal  pursuits,  we  adhere  to  the  policy  of 
protection ;  but  in  reference  to  ship-building,  we  adhere  at  present  to 
one  of  oppression.  We  protect  all  other  industries  at  the  expense  of 
commerce. 

The  CHAIRMAN.  Would  the  effect  of  purchasing  our  ships  abroad  be 
to  make  them  foreign  in  their  character  to  a  considerable  extent? 

Mr.  Low.  They  would  be  foreign  ships ;  and  I  think  they  could  build 
them  at  present  so  much  more  cheaply  than  we  can  that  there  would  be 
little  hope  of  reviving  that  industry  among  ourselves. 

The  CHAIRMAN.  What  I  mean  is,  whether  there  would  not  be  inter 
ests  of  ownership  on  the  other  side  which  would  make  those  ships  to  a 
great  extent  foreign — whether  it  would  not  necessitate  a  change  of  laws 
as  to  officering  and  manning  our  ships,  and  whether  our  ships  would  not 
be  finally  pretty  much  under  the  control  of  foreign  interests? 

Mr.  Low.  If  Americans  should  buy  ships  abroad  and  put  them  under 
the  American  flag,,  we  have  men  enough  to  command  and  man  them,  and 
I  do  not  know  whether  there  would  be  any  tendency  to  employ  others 
instead  of  Americans. 

The  CHAIRMAN.  Why  I  ask  that  question  is,  that  was  submitted  by 
the  Ship-owners'  Association  of  New  York,  in  favor  not  only  of  foreign 
ships,  but  of  foreign  officers  and  crews. 

Mr.  Low.  I  think  that  that  is  the  sentiment  of  an  alien,  not  of  an 
American.  I  cannot  imagine  that  any  American  should  wish  to  see  for 
eign  ships  where  we  hitherto  had  American  ships,  and  to  see  foreign 
commanders  and  sailors  in  place  of  Americans.  Our  sailors  have  been 
always  very  largely  foreigners,  but  our  ship-masters  and  mates  have  been 
generally  Americans.  There  are  enough  of  them  awaiting  employment 
now,  and  every  patriotic  sentiment  would  urge  their  employment. 

The  CHAIRMAN.  I  suppose  that  that  was  a  question  of  economy,  as  it 
is  in  the  purchase  of  ships? 

Mr.  Low.  We  have  many  men  now  idle  who  would  be  glad  of  employ 
ment  at  a  very  moderate  compensation.  In  former  times  we  had  no  dis 
position  to  employ  foreigners  in  preference  to  Americans,  when  the  laws 
allowed  it.  We  always  had  good  commanders,  and  when  wood  was  em 
ployed  in  the  manufacture  of  our  ships,  we  had  the  sea.  It  was  only 
when  the  new  condition  came  into  force,  steam  instead  of  sailing  ships, 


NAVIGATION   INTERESTS.  49 

and  iron  instead  of  wood,  that  we  lost  it,  and  then,  I  think,  through  the 
policy  of  England  in  subsidizing  steam  lines,  which  took  all  the  valuable 
traffic  and  all  the  passengers.  The  English  maintain  their  steamers  by 
ample  subsidies ;  our  government  does  not.  And,  as  I  said  before,  the 
propeller  has  taken  the  place  of  the  side-wheeler,  and  the  wooden  ship 
cannot  bear  the  propeller ;  therefore  England  now  engrosses  almost  the 
whole  building  of  steamers. 

The  CHAIRMAN.  You  say  that  wooden  ships  cannot  bear  the  propeller. 
Is  that  on  account  of  the  strain  ? 

Mr.  Low.  The  action  of  the  propeller,  I  am  told,  is  such  that  no  wooden 
vessel  can  stand  it  on  the  ocean.  They  do  very  well  along  the  coast  and 
in  still  waters ;  but  I  was  told  that  on  the  Atlantic  a  wooden  vessel  can 
not  stand  the  action  of  the  propeller.  I  think  that  Mr.  White  will  tell 
you  the  same  thing.  Therefore  our  steamers  are  driven  from  the  ocean. 
1  do  not  think  myself  that  wooden  fabrics  would  stand  the  strain. 

Mr.  CALKIN.  I  do  not  understand  you  to  be  in  favjor  of  abrogating 
the  present  navigation  laws  ? 

Mr.  Low.  I  have  beeu  always  in  favor  of  American  interests. 

Mr.  CALKIN.  You  are  one  of  our  leading  merchants,  and  I  should 
like  that  expression  from  you. 

The  CHAIRMAN.  He  has  already  given  it  while  you  were  out. 

Mr.  Low  read  some  proof-sheets  of  an  article  contributed  by  him  to 
Putnam's  Magazine  for  December,  which  article  is  hereto  annexed,  as 
follows : 

SOVEREIGNTY  OF  THE  SEAS. 

An  idea  extensively  prevails  that  the  contest  for  supremacy  on  the  ocean  was  virtu 
ally  closed  with  the  victories  of  Trafalgar  and  the  Nile.  After  the  destruction  of 
the  French  fleets  in  the  Mediterranean,  it  was  indeed  evident  enough  that  no  single 
nation,  nor  all  the  maritime  powers  in  the  world  combined,  could  successfully  cope  with 
Great  Britain  on  the  sea.  Throughout  the  waters  of  the  globe  the  British  ensign  waved 
triumphantly,  the  undisputed  and  unquestioned  symbol  of  sovereignty.  Down  to  the 
time  when  the  wars  of  Napoleon  ceased  the  naval  arm  was  used  more  as  an  auxiliary 
to  contending  armies  battling  for  dominion  on  the  land  than  as  a  means  of  controlling 
the  commerce  of  the  world.  As  an  agent  for  crippling  the  strength  of  an  adversary  the 
navy  has  always  been  employed ;  while  the  lust  for  gain  has  stimulated  an  active  cru 
sade  against  private  property  in  aid  of  a  more  direct  national  aim.  Even  now,  when 
commerce  is  so  much  extended,  and  the  interests  of  all  countries  and  all  peoples  are  so 
blended  as  to  be  inseparable,  every  effort  to  abolish  privateering  fails,  and,  when  na 
tions  resort  to  war,  merchant-ships,  doubtless,  will  continue  to  be  the  prey  of  the 
national  cruiser  and  privateer  alike. 

The  purpose  of  this  article,  however,  is  not  to  consider  the  "usages  of  war,"  nor  the 
abuses  to  which  war  gives  rise.  Friend  and  foe  have  taught  the  United  States  a  lesson 
in  this  regard  that  will  not  soon  be  forgotten.  It  is  our  aim,  rather,  to  show  in  this 
paper  that  supremacy  on  the  ocean  in  the  interests  of  commerce  was  not  so  directly 
sought,  nor  so  effectually  gained,  by  the  vast  and  costly  armaments  of  Great  Britain  in 
the  wars  that  preceded  the  present  century,  as  it  has  been  by  the  more  peaceful  and 
inexpensive  method  steadfastly  pursued  by  that  country  during  the  last  thirty  years. 
Or,  without  undertaking  to  show,  what  it  might  be  difficult  to  prove,  that  the  contest 
on  the  ocean  has  not  always  been  waged  by  Great  Britain  to  advance  the  interests  of 
her  foreign  commerce ;  or,  admitting  this  to  have  been  the  ultimate  aim,  and  open  com 
munication  with  her  distant  colonies  a  nine  qua  nan,  demanding  the  utmost  exertion 
of  her  naval  power,  it  is  still  of  paramount  importance  to  mark  the  policy  that  has  gov 
erned  her  statesmen  since  the  cessation  of  the  continental  wars.  Whether  for  coast  de 
fense,  or  as  a  means  of  hostile  attack,  or  to  keep  pace  with  the  growing  navies  of  other 
maritime  powers,  England  steadily  adds  to  the  number  of  her  ships'  of  war,  never  fal 
tering  in  her  purpose  of  holding,  at  any  cost,  the  dominion  of  the  sea.  Let  any  who 
doubt  this  visit  her  dock-yards  and  her  channel  fleets,  and  behold  the  majestic  irou-clads. 
formidable  for  their  size,  their  armor,  and  their  armament,'  as  well  as  for  their  great 
propelling  power.  The  superiority  of  England  in  this  class  of  vessels  for  purposes  of 
attack  and  defense  it  is  not  popular  with  us  to  admit.  We  are  vain  enough  to  assume 
that  against  armored  ships  of  the  greatest  magnitude  and  the  most  powerful  batteries, 
our  slowly-moving  monitors;  with  two  and  four  heavy  guns,  are  a  safe  reliance.  Be  it  ao ! 

4  N  I 


50  NAVIGATION   INTERESTS. 

Monitors  have  answered  the  purpose  for  which  they  were  created ;  and  it  is  not  in  the 
direction  of  her  naval  armaments  that  the  policy  of  England  demands  onr  present  at 
tention  or  imitation.  Were  it  otherwise,  our  naval  officers  are  abroad — they  are  intel 
ligent  and  observing — and  we  can  safely  leave  to  the  verdict  of  their  judgment  such 
problems  as  only  experts  can  solve. 

From  1815  to  1835  peace  reigned  throughout  the  world,  affording  an  opportunity  to 
all  the  nations  bordering  on  the  sea  to  enter  into  a  friendly  competition  for  the  carry  ing 
trade  of  the  nations.  In  the  ensuing  struggle  the  United  States  acquired  a  prestige 
that  was  unexcelled ;  and  such  was  the  skill  of  our  mechanics,  the  abundance  of  our 
material  for  the  construction  of  ships,  and  the  aptitude  of  our  sons  for  the  life  of  a 
sailor,  that  our  republic  gained  the  command  of  the  trade  to  and  from  Europe,  and  was 
a,  bold  and  successful  competitor  with  Great  Britain  for  the  traffic  between  her  own  col 
onies  and  the  mother-country,  as  well  as  for  that  from  China  and  other  portions  of  the 
East.  A  little  later  on,  our  clippers,  outsailing  the  old-fashioned  vessels,  became  mod 
els  for  merchantmen ;  and,  notwithstanding  the  proverbial  obstinacy  of  the  English  and 
Scotch,  they  were  alert  enough  to  accept  and  adopt  them. 

But  what  a  change  since  then  has  taken  place,  commencing  in  1837  and  1838,  but  not 
patent  to  the  common  eye  till  ten  or  fifteen  years  later  on.  England's  maritime  suprem 
acy  is  so  manifest  now  as  to  reflect  our  national  humiliation  !  How  this  is  to  come  to 
pass  it  is  not  difficult  to  explain  ;  but  the  explanation  is  mortifying  and  painful. 

Many  things  have  combined  and  worked  together  to  produce  the  revolution.  In  the 
chain  of  events  resulting  in  the  rapid  decline  of  our  commerce  may  be  cited  the  fol 
lowing,  viz : 

1st.  A  substitution  of  steamships  for  sailing-vessels ;  this  commenced  about  1837-'38. 

2d.  The  use  of  iron  instead  of  wood  in  the  construction  of  ships  and  steamers. 

3d.  The  reaction  from  high  rates  of  freight,  because  of  the  vast  increase  of  tonnage 
which  the  trade  of  California  brought  into  being,  the  expulsion  of  sailing-vessels  from 
short  ocean  routes,  and  the  consequent  overcrowding  of  distant  ports. 

4th.  The  war  of  the  rebellion,  which  raised  up  an  insidious  foe,  and  for  five  years 
rendered  the  building  and  sailing  of  American  ships  a  worse  than  profitless  pursuit,  and 
which  finally  imposed  a  burden  of  taxes  on  all  the  material  that  enters  into  the  con 
struction  of  vessels,  and  so  enhanced  the  price  of  labor  and  of  seamen's  wages  as  to  make 
competition  with  our  great  rival  most  unequal. 

When  it  is  borne  in  mind  that  the  shipping  interest  was  the  only  important  interest 
at  the  North  that  suffered  by  the  war,  and  that  other  great  interests  have  been  benefited 
rather  than  injured  by  the  enactment  of  import  and  internal  revenue  laws,  it  seems 
strange  that  Congress  has  done  little  or  nothing  to  mitigate  the  burden  on  our  external 
commerce ;  failing  utterly  to  relieve  it  from  th«  operation  of  laws  that  bear  unjustly 
on  the  mercantile  class,  and  hence,  injuriously  on  the  community  at  large. 

Under  four  distinct  heads  we  have  now  stated  what  seem  to  be  secondary  causes  of 
the  decline  of  our  national  commerce.  The  disturbed  condition  of  our  currency  might 
have  been  named  after  the  fourth  of  the  series,  because  it  is  the  direct  conseqiience  of 
our  civil  war.  It  is  too  important  to  be  overlooked  ;  it  is  too  well  understood,  and  too 
keenly  felt,  to  require  comment.  Would  that  there  were  any  disposition  in  the  people 
at  large  to  correct,  what  so  many  profess  to  deplore,  and  yet  do  nothing  to  amend! 
Unless  a  better  spirit  appears  than  hitherto  has  marked  the  deliberations  of  Congress, 
this  fruitful  source  of  demoralization  and  disability  must  continue  and  stand  out  as  a 
harm  and  a  hinderance  to  our  commercial  progress.  The  depreciation  of  the  national 
currency,  considered  in  connection  with  the  other  reasons  for  the  depression  of  our 
commerce,  serves  to  intensify  the  claim  on  our  government  for  the  renewal,  on  a  more 
generous  scale,  of  subsidies  to  ocean  mail  steamers.  Assuming,  as  we  do,  that  the  contest 
lor  supremacy  on  the  ocean  did  not  cease  in  1815,  but  has  taken  a  new  form,  nothing 
has  transpired  to  signalize  the  wisdom  of  British  statesmen  more  striking  than  the 
plan  so  successfully  pursued  of  subsidizing  lines  of  mail  steamers  to  all  important  parts 
of  the  world.  The  wisdom  on  their  part  would  be  manifest  enough  if  not  contrasted 
with  our  own  folly  ;  and  our  folly  would  be  more  endurable  if  we  had  not  been  misled 
by  the  arguments  of  our  free-trade  adversary,  plausibly  presented,  instead  of  being 
guided  by  his  example. 

The  astute  Emperor  of  France  disdains  not  to  listen  to  English  counsel,  but,  with  a 
judgment  better  than  our  own,  imitates  English  example.  Indeed,  it  is  beautiful  to 
behold  two  hereditary  foes,  in  loving  obedience  to  the  doctrine  of  "  free  trade,77  steam 
ing  side  by  side,  in  quest  of  .the  silk  of  China  and  Japan — competing  in  generous 
rivalry  for  the  trade  of  the  East.  And  observe  the  consequences!  By  degrees  Lyons 
becomes  the  distributing  mart  instead  of  London,  and  English  manufacturers  close  their 
doors  in  view  of  the  French  competition.  France  returns  the  chalice  to  the  lips  of 
England !  In  the  face  of  sfich  results  it  must  have  amused  the  friend  of  Cobdeu — the 
renowned  Ernperor — when  it  was  declared  in  Parliament  that  to  receive  proposals  from 
the  Messageries  Impe'riales  for  the  transportation  of  her  Britannic  Majesty's  mails 
would  be  "  free  trade  run  \nad,"  and  the  sentiment  was  applauded  to  the  echo!  Eng 
land  was  for  free  trade  just  so  long  as  England  could  profit  by  it,  and  no  longer. 


NAVIGATION    INTERESTS.  51 

The  application  of  steam  as  a  motive  power  to  ships  on  the  ocean  about  1837  and  183? 
inaugurated  a  new  era  in  maritime  history,  and  the  statesmen  of  England  were  quick 
to  discern  the  importance  of  the  epoch.  Almost  immediately  a  contract  for  the  trans 
portation  of  British  mails  to  the  United  States  was  entered  into,  being  the  first  of  a 
system  of  contracts  which  has  been  persistingly  extended  till  it  has  become  world- 
embracing.  Lines  of  steamers  to  Canada,  to  the  West  Indies,  to  Brazil,  to  the  Cape  oJ 
Good  Hope,  to  Australia  and  New  Zealand,  to  British  India,  China,  and  Japan,  are 
among  the  most  important  of  those  hitherto  established.  These  have  not  all  been 
uniformly  successful.  In  the  loss  of  ships  at  sea  several  have  been  unfortunate,  and 
financial  disaster  sometimes  has  been  imminent ;  but  under  every  discouragement  the 
British  government  has  been  faithful,  sustaining  by  large  and  larger  subsidies  the 
waning  fortunes  of  the  weak,  and  by  most  liberal  concessions  strengthening  others  to 
resist  either  threatened  or  actual  competition.  From  the  outset,  the  vivifying  effect 
upon  the  commerce  of  England  of  these  swift  messengers  to  different  countries  was  too 
apparent  to  escape  observation.  It  was  seen  that  under  another  name  an  international 
express  system  had  been  established  which  was  taking  to  Great  Britain  the  "  quick 
orders  "  and  also  the  most  enterprising  traders,  to  seek  in  the  well-supplied  warehouses 
of  England  the  merchandise  they  needed,  while  returning  steamers  conveyed  goods  and 
buyer,  at  once,  to  his  own  doors  at  home. 

The  results  of  this  extended,  well-organized,  and  regular  system  of  international 
transportation  were  soon  apparent : 

1st.  In  the  creation  of  a  class  of  unsurpassed  steamers. 

2d.  In  raising  up  a  select  body  of  seamen,  loyal  adherents  to  the  service  in  which 
they  were  reared,  and  ready  both  to  man  the  transports  so  useful  in  peace,  and  to  sus 
tain  the  honor  of  their  flag  in  the  emergencies  of  war. 

3d.  In  educating  a  corps  of  accomplished  officers,  all  the  while  acquiring  familiarity 
with  the  navigable  waters,  ports,  and  harbors  constantly  visited  and  revisited. 

4th.  In  perfecting  the  skilled  mechanics  of  the  realm  in  the  use  of  iron,  and  its  adap 
tation  to  the  rapidly-growing  steam  marine. 

5th.  In  imparting  a  stimulus  to  the  manufacturing  industries  of  the  kingdom,  so 
abounding  in  resources  and  talent,  garnered  up  and  held  in  reserve  for  new  and 
enlarged  uses. 

6th.  In  drawing  to  the  bonded  warehouses  of  London  and  Liverpool  the  products  ol 
every  country  and  every  clime,  to  be  distributed,  through  largely  increased  facilities, 
to  the  less  favored  nations  and  the  waiting  markets  of  the  surrounding  world. 

It  were  easy  enough  to  extend  the  recital  of  advantages  immediately  resulting  from 
the  adoption  of  a  policy  in  the  pursuit  of  which  British  statesmen  have  never  wavered. 
But  the  record  is  long  enough  and  amply  suggestive. 

When  ten  years  or  less  had  borne  abounding  testimony  to  the  success  of  this  policy 
on  the  other  side  of  the  Atlantic,  the  American  Congress  was  awakened  from  its  slum 
bers,  and  manifested  a  willingness  to  follow  a  lead  that  was  so  full  of  promise,  and  to 
strike  for  a  share  in  the  prize  that  was  not  yet  beyond  our  grasp.  A  subsidy  was 
finally  granted  to  the  "Collins  line,"  and  we  recall,  Avith  melancholy  pleasure,  the 
outgoing  and  incoming  of  those  noble  ships,  the  Atlantic,  Pacific,  Baltic,  Arctic,  and 
Adriatic,  as  they  entered  on  their  brief,  brilliant,  unfortunate,  disastrous  career.  The 
time  of  service  was  long  enough  to  establish  their  excellence  as  sea-going  vessels,  and 
the  record  of  their  passages  will  compare  favorably  with  any  similar  number  made  in 
later  years.  But  misfortunes,  came  apace.  The  Arctic  and  "Pacific  both  foundered  at 
sea — the  Arctic  in  consequence  of  a  collision  with  a  French  steamer ;  the  Pacific,  proba 
bly,  in  consequence  of  a  collision  with  an  iceberg.  There  was  bad  management  on 
shore,  and  it  is  said  injudicious  applications  were  made  to  Congress  for  increased  pay. 
These  things  disheartened  and  disgusted  the  friends  of  the  enterprise,  and  it  came  to 
an  untimely  end.  The  failure  of  this  line  to  justify  public  expectation  proved  a  death 
blow  to  the  hopes  of  all  who  had  looked  to  Congress  for  a  more  generous  support. 
Unlike  British  statesmen,  our  own  had  yielded  a  reluctant  assent  to  a  pressing  popular 
demand.  The  statesmen  of  Great  Britain  embraced  with  ardor  a  great  opportunity, 
and  adhered  to  it  with  courage  and  fortitude  as  in  the  prophetic  strength  of  a  grand 
inspiration.  All  are  familiar  with  the  sequel.  Three  hundred  thousand  immigrants 
come  annually  to  our  shores  in  British-built  steamers ;  and  thirty  to  fifty  thousand 
Americana  cross  and  rccross  the  Atlantic,  paying  tribute  in  gold  to  the  superior  genius 
of  British  statesmanship  ;  and  it  is  come  to  pass,  in  the  great  contest  for  supremacy 
on  the  ocean,  that  the  "stars  and  stripes"  drocp  beneath  the  cross  of  St.  George. 

It  is  disheartening  to  pursue  the  topic;  but  hope  is  not  wholly  banished.  Amid 
the  host  of  lawyers,  farmers,  and  politicians  that  throng  the  halls  of  Congress  there 
are  many  men  of  enlarged  minds  and  noble  impulses — American  in  name  and  in  heart. 
It  is  not  too  late  for  them  to  ponder  the  lesson  so  dearly  learned,  and  to  fight  out  the 
battle  once  more  on  the  old  line. 

Brazil  shares  with  our  country  the  merit  of  sustaining  by  a  feeble  subsidy  a  number 
of  steam-packets,  which,  sailing  monthly,  touch  here  and  there  along  the  South  Amer 
ican  coast.  The  Pacific  mail,  stretching  out  seven  thousand  miles  across  the  ocean 


52  NAVIGATION   INTERESTS. 

whose  name  it  bears,  being  subsidized  by  Congress,  still  lives,  fulfilling  all  reasonable 
expectations.  But  the  subsidy  it  receives  from  the  Post  Office  Department  of  $500,000 
is  wholly  inadequate  to  an  extension  of  the  service.  At  anytime  it  may  be  driven  from 
the  fiehlby  the  Peninsular  and  Oriental  line  of  steamers,  whose  contract  with  the  British 
government  for  carrying  her  Majesty's  mails  has  lately  been  renewed,  with  the  subsidy 
increased  to  £500,000,  a  sum  greater  than  $3,000,000  of  our  currency.  In  this  connec 
tion,  let  it  not  be  forgotten  that  when  Cunard  wanted  to  build  the  Persia  and  Scotia 
to  run  off  the  Collins  steamers,  after  a  careful  investigation  by  a  parliamentary  com 
mittee,  the  contract  with  his  company  was  renewed  years  in  advance  of  the  period  of 
its  expiration.  Some  "blue  book"  that  is  yet  to  meet  our  eyes  may  enlighten  us  in 
regard  to  the  spirit  and  arguments  that  animated  her  Majesty's  ministers  in  this 
increase  of  pay  to  the  Peninsular  and  Oriental  line. 

The  recent  completion  of  our  great  continental  railway  imparts  a  fresh  interest  to 
the  subject  of  this  article.  The  munificent  appropriation  of  sixty  millions  of  dollars  iu 
aid  of  a  single  work  of  internal  improvement,  a  work,  too,  that  comes  in  direct  com 
petition  with  the  Pacific  Mail  Steamship  Company,  presents  in  niggardly  contrast  the 
annual  appropriation  of  less  than  one  million  dollars  to  facilitate  the  transmission  of 
the  mails  on  all  the  great  highways  of  the  ocean,  when,  as  we  have  seen,  so  much  else 
depends  upon  the  venture. 

About  two  hundred  millions  in  gold,  annually,  are  derived  from  duties  on  imports  ; 
fifteen  or  twenty  millions  are  voted,  annually,  for  the  maintenance  of  a  navy ;  and  one 
of  the  declared  purposes  of  the  national  income  is  to  protect  our  external  commerce. 

Indirectly  much  good  results  from  the  expenditure  of  this  income  in  ways  that  have 
been  suggested  in  the  course  of  this  paper  ;  but  far  better  returns  would  be  obtained 
if  subsidies  were  largely  and  wisely  bestowed  in  building  up  and  sustaining  lines  oi 
steamers  on  all  the  great  ocean  routes.  Let  the  national  money  be  so  spent  as  to 
restore,  if  possible,  our  lost  prestige  on  the  sea. 

The  foe  to  our  commercial  development  is  in  cabinets,  and  not  in  hostile  cruisers  ; 
money,  instead  of  guns,  is  the  instrument  employed  to  secure  supremacy  on  the  ocean ; 
and,  in  these  modern  days,  victory  is  won  under  the  banner  of  peace. 

When  our  legislators  cease  to  be  mere  politicians  and  learn  to  be  statesmen,  they 
will  heed  the  voices  that  come  up  from  the  sea.  Then  the  "stars  and  stripes,"  floating 
at  the  peaks  of  our  transatlantic  steamers,  will  once  more  gladden  our  eyes,  and  the 
mortification  of  the  present  hour  will  give  place  to  a  pride  like  that  of  our  fathers,  in 
which  some  of  us  shared  in  our  youthful  days ! 

Mr.  POILLON  made  a  statement  to  the  committee.  He  said  that  be 
was  a  ship-owner  and  ship-builder  in  New  York.  He  was  engaged  in 
the  construction  of  wooden  vessels,  and  was  part  owner  in  some  twenty- 
four  vessels.  His  views  had  been  fully  expressed  previously  by  Mr. 
Stirners.  The  views  expressed  by  Mr.  Stiiners  were  generally  correct  in 
relation  to  the  conduct  of  our  shipping  interests  and  the  mode  of  its 
revival.  He  should  like,  however,  to  correct  the  impression  that  the 
Ship-owners'  Association  reflected  the  views  of  the  ship-owners  generally 
of  New  York.  That  was  not  so.  He  had  in  his  hand  the  constitution 
and  by-laws  of  the  Ship-owners'  Association,  which  contained  all  the 
names  of  its  members,  to  tbe  number  of  one  hundred  and  forty-one.  Of 
that  one  hundred  and  forty  one  there  were  forty  who  owned  foreign 
ships  entirely,  and  whose  interests  were  not  identical  with  American 
interests  in  any  way  whatever.  Although  among  the  remainder  there 
were  some  of  the  most  respectable  ship-owners  of  New  York,  yet  there 
were  also  many  others  whose  business  was  confined  entirely  to  the  con 
signment  of  foreign  vessels,  and  who  were  thus  identified  with  foreign 
ships.  He  therefore  considered  that  that  association  was  not  a  fair  ex 
ponent  of  the  ship-owners  of  New  York  or  of  the  country.  Many  of  the 
most  respectable  ship-owners,  among  others  Messrs.  Low,  Nesmith  & 
Sons,  E.  P.  Buck  &  Co.,  and  many  others  whose  names  he  could  not  now 
recall,  had  no  connection  with  that  association.  Several  ship-owners 
connected  with  the  association  entertained  entirely  different  views  from 
those  expressed  yesterday,  and  were  most  strongly  opposed  to  the  re 
peal  of  the  navigation  laws.  He  thought  that  all  that  the  ship-building 
interest  of  the  country  required  was  a  drawback  of  duties  on  all  the 
materials  that  enter  into  the  construction  of  ships,  particularly  of  the 
duties  on  iron,  copper,  and  cordage.  The  duty  on  copper  at  present  was 


NAVIGATION   INTERESTS.  53 

a  prohibitory  duty,  preventing  any  importation  of  copper,  and  compelling 
American  ship-builders  to  pay  some  seven  or  eight  cents  per  pound  for 
copper  more  than  the  English  ship-builders  paid.  The  duties  on  iron, 
he  believed,  were  from  thirty  to  thirty-five  per  cent.,  operating  to  that  ex 
tent  against  the  American  ship-building  interests.  As  to  labor,  although 
the  American  workmen  were  paid  more  than  the  English,  yet  he  thought 
that  the  superior  skill  of  the  American  mechanics  more  than  offset  the 
difference  in  wages. 

Mr.  HOLMAN.  You  say  that  the  duty  imposed  on  copper  results  in 
actual  prohibition  $ 

Mr.  POILLON.  Yes,  sir ;  the  act  of  last  winter  is  a  prohibitory  tariff  so 
far  as  copper  is  concerned.  It  acts  very  seriously  on  the  ship-repairing 
interest.  The  ships  that  require  to  be  recoppered  will  take  a  freight 
which  they  know  is  not  profitable,  and  sometimes  where  they  know 
that  there  will  be  real  loss  upon  it,  for  the  purpose  of  getting  to  England 
in  order  to  make  a  saving  on  their  copper ;  thus  not  only  cutting  off  the 
revenue  that  might  be  derived  by  this  country  from  a  moderate  tariff 
such  as  existed  before  the  war,  but  also  seriously  injuring  our  mechan 
ical  interests  in  the  coppering  work  being  done  in  England  which  should 
be  done  in  this  country.  Not  only  was  the  coppering  work  thus  lost  to 
this  country,  but  also  a  large  amount  of  repairs,  which  generally  go  with 
the  coppering  of  vessels,  such  as  rigging  and  carpenter  work.  It  strikes 
at  a  dozen  different  kinds  of  mechanical  interests. 

Mr.  HOLMAN.  How  does  that  occur,  inasmuch  as  the  duty  on  copper 
does  not  exceed  that  on  iron  I 

Mr.  WELLS.  It  does  exceed  that  on  iron. 

Mr.  HOLMAN.  Very  slightly. 

Mr.  WELLS.  The  duty  on  iron  is  thirty -three  or  thirty-four  per  cent., 
and  on  copper  seventy-five  per  cent. 

Mr.  POILLON.  The  copper  is  furnished  in  England  at  about  l^d.  per 
pound,  whereas  here  it  is  twenty-seven  cents. 

Mr.  HOLMAN.  Then  the  practical  result  is  actually  to  exclude  copper 
from  importation  I 

Mr.  POILLON.  Yes,  sir.  It  operates  also  very  seriously  against  our 
docking  interests.  We  have  the  best  docking  facilities  in  this  port  that 
there  are  in  the  world.  We  can  take  up  the  largest  vessels  with  the 
most  expedition.  There  are  millions  of  dollars  invested  in  the  docking 
interests  in  this  port,  and  this  prohibitory  tariff  on  copper  strikes  them 
very  seriously. 

Mr.  WELLS.  What  effect  would  the  imposition  of  a  duty  upon  all 
foreign-built  ships  coming  to  this  country  have  upon  our  commerce1? 

Mr.  POILLON.  That  would  cause  great  excitement,  and  foreign  gov 
ernments  would  be  inclined  to  put  the  same  duty  upon  American  ships, 
so  that  I  think  it  would  not  have  the  desired  effect. 

Mr.  WELLS.  Then  the  only  remedy,  you  think,  is  to  allow  drawbacks 
upon  the  materials  used  in  the  construction  of  ships  I 

Mr.  POILLON.  Yes,  sir ;  to  put  our  mechanics  on  the  same  footing 
with  the  English  mechanics. 

Mr.  WELLS.  In  the  event  of  Congress  passing  a  law  of  that  kind, 
what  would  be  your  opinion  as  to  the  expediency  of  removing  all  obsta 
cles  in  the  way  of  purchasing  ships  abroad  and  affording  them  Ameri 
can  registration? 

Mr.  POILLON.  I  think  that,  after  we  once  got  a  start,  we  would  require 
out  a  short  time  to  be  able  to  compete  with  England  in  ship-building, 
and  American  ship-owners  would  find  that  ships  could  be  built  as  cheaply 


54  NAVIGATION   INTERESTS. 

here  as  iii  England $  and,  wherever  that  has  been  so,  American  vessels 
have  always  been  preferred.  ..  . 

Mr.  WELLS.  Under  our  present  law  a  great  number  of  ships  owned 
by  Americans  are  sailing  under  the  English  flag,  and  that  would  bring 
those  ships  back  under  the  American  Sag,  and  would,  of  course,  give 
our  commerce  more  respectability  abroad  as  well  as  at  home? 

Mr.  POILLON.  It  occurs  to  me  that  all  that  the  ship-building  interest 
of  this  country  requires  is  to  be  put  upon  the  same  footing  with  the  Eng 
lish.  If  free  trade  in  foreign  bottoms  y/ere  to  be  allowed,  and  not  free 
trade  in  ships7  materials  at  the  same  time,  so  that  the  two  should  go 
hand  in  hand  together,  the  result  would  be  that  our  coasting  trade  would 
be  swamped  with  English  bottoms  before  we  could  defend  ourselves. 
They  would  be  nominally  held  by  Americans,  but  in  reality  they  would 
be  held  by  British  subjects  and  would  be  controlled  by  British  capital  ; 
and  our  immense  coasting  trade,  the  only  thing  of  value  left  to  us,  would 
be  swept  entirely  from  us. 

Mr.  HOLMAN.  Mr.  Stimers  expressed  the  opinion  that  if  drawbacks 
were  allowed  to  the  extent  of  the  duty  on  materials  entering  into  the 
construction  of  ships,  and  if  free  trade  in  ships  were  allowed  at  the  same 
time — those  two  measures  going  together,  without  any  reference  to  ad 
mitting  foreign -built  bottoms  to  our  coasting  trade — our  commerce  and 
ship-building  interest  would  revive.  What  would  be  your  view  on  that 
point,  taking  those  two  measures  together  ? 

Mr.  POILLON.  I  think  that  they  ought  not  to  go  together  at  the  same 
time.  I  think  that  the  ship-building  interest  ought  to  have  the  prefer 
ence,  so  as  to  give  sufficient  start  to  put  itself  on  a  fair  footing,  so  as  to 
make  the  responsibility  equal.  After  the  ship-building  interest  having 
this  advantage  for  two  or  three  years,  then  the  whole  trade  should  be 
opened  ;  but  I  think  we  should  have  a  little  chance  first  to  recover  our 
selves. 

Mr.  CALKIN.  Let  us  have  your  idea  of  the  time  required  again  more 
definitely. 

Mr.  POILLON.  Two  years  would  be  ample.  What  Americans  cannot 
do  in  two  years  they  never  can  do. 

Mr.  HOLMAN.  If  you  connect  these  two  measures,  free  trade  in  foreign- 
built  vessels  and  drawbacks  on  materials  entering  in  to  ship-building,  and 
if  you  give  American-built  vessels  exclusively  the  whole  coastwise  trade, 
how  would  that  affect  commerce,  the  whole  three  going  together  from 
the  beginning? 

Mr.  POILLON.  I  think  that  that  is  all  that  our  people  could  reasona 
bly  ask  for. 

Mr.  WELLS.  Do  you  not  think  that  allowances  of  reasonable  subsidies 
to  new  lines  of  steamers,  in  connection  with  those  other  measures,  would 
have  a  tendency  to  increase  our  commercial  interests  ? 

Mr.  POILLON.  I  think  that  that  is  the  only  way  we  can  ever  recover 
the  European  trade ;  but  it  would  not  be  requisite  in  regard  to  other 
trade.  The  English  have  such  an  immense  start  over  us  in  the  Euro 
pean  trade  that  that  is  the  only  way  we  can  ever  place  ourselves  even 
with  them,  even  if  we  should  build  ships  as  cheaply  as  they  do. 

Mr.  WELLS.  Do  you  not  think  that  our  business  men  here  would  give 
American  bottoms  the  preference? 

Mr.  POILLON.  American  merchants  have  not  the  same  unity  of  action 
that  the  English  merchants  have.  Capital  is  more  abundant  in  Eng 
land,"  and  the  English  are  content  with  less  interest  for  their  money. 
For  any  enterprise  that  looks  like  paying  at  all  there  never  is  any  lack 
of  capital  there.  The  English  and  Erench  have  pursued  the  same  policy 


NAVIGATION   INTERESTS.  55 

in  the  South  American  trade.  They  subsidize  vessels  to  a  large  extent 
in  the  Brazilian  trade  and  in  the  trade  to  the  west  coast  of  Africa,  and 
wherever  there  is  an  opening  to  build  a  commerce,  there  they  subsidize 
ships.  The  result  is  that  in  the  Brazilian  trade  the  French  lines  are 
superior  to  the  English,  as  they  have  more  encouragement. 

Mr.  WELLS.  The  French  subsidize  their  ships  heavier  and  have  finer 
ships? 

Mr.  POILLON.  Yes,  sir ;  that  is  the  opinion  I  have  heard  expressed 
by  Brazilians  of  them — that  the  French  ships  are  preferred  to  the  Eng 
lish. 

Mr.  CALKIN.  Then  I  understand  from  you  that  the  English  and 
French  governments  are  subsidizing  their  steamers  running  to  South 
America  and  to  other  ports  more  than  they  do  those  running  to  this  port? 

Mr.  POILLON.  Yes,  sir;  that  is  done  to  get  this  Brazilian  trade.  That 
has  always  been  the  policy  of  England.  It  was  so  in  relation  to  this 
country.  It  was  the  means  employed  to  crush  out  the  Collins  line — to 
gether  with  the  opposition  of  Vanderbilt,  who  failed  to  get  a  subsidy 
for  his  line  at  that  time,  and  then  turned  and  helped  to  crush  the  Collins 
line. 

Mr.  CALKIN.  The  English  government  formerly  subsidized  the  Cu- 
nard  line  more  than  it  does  now  ? 

Mr.  POILLON.  Yes ;  the  line  is  now  more  able  to  take  care  of  itself. 
But  the  English  government  would  have  supported  that  line  to  any  ex 
tent  rather  than  see  it  broken  down. 

Mr.  HOLMAN.  You  are  not  able,  I  suppose,  to  state  the  extent  to  which 
the  English  encourage  shipping  by  subsidies'? 

Mr.  POILLON.  No,  sir;  I  have  seen  the  amounts  that  are  paid  by  the 
mail  department,  but  I  have  not  them  in  my  mind  at  present.  The 
English  government  is  more  liberal  with  lines  to  South  America  and 
other  countries,  than  with  lines  to  this  country  at  present. 

Mr.  HOLMAN.  You  are  not  able,  I  suppose,  to  state  the  extent  of  its 
subsidies  to  this  trade? 

Mr.  POILLON.  No,  sir ;  I  am  not.  We  would  require  something  more 
than  free  trade  in  ships  in  order  to  put  us  on  a  par  with  England. 
Their  policy  is  to  allow  a  drawback  upon  all  the  articles  that  a  ship  re 
quires  for  her  outfit.  They  are  taken  out  of  bond  duty  free.  An  Eng 
lish  ship  would  still  have  a  very  great  advantage  over  our  vessels  if  our 
vessels  were  not  entitled  to  the  same  privilege. 

Mr.  HOLMAN.  Does  that  system  prevail  generally  among  commercial 
nations? 

Mr.  POILLON.  I  am  not  prepared  to  state  how  it  is  in  France;  but  my 
impression  is  that  it  does,  because  the  French  have  been  copying  in  a 
measure  the  English  laws  so  far  as  they  relate  to  commerce. 

Mr.  HOLMAN.  Would  that  system  naturally  exist  with  any  nation 
that  was  not  peculiarity  a  commercial  nation? 

Mr.  POILLON.  I  think  not. 

Mr.  HOLMAN.  Where  commerce  is  the  main  object,  such  a  policy 
would  be  natural  and  proper  enough? 

Mr.  POILLON.  Yes,  sir.  The  fostering  of  commerce  has  been  the 
source  of  England's  wealth,  and  they  have  always  had  that  in  view. 

Mr.  HOLMAN.  I  understood  you  to  express  the  idea  that  if  free  trade 
were  allowed  in  foreign-built  vessels  at  the  same  time  as  a  drawback  of 
duties  on  the  materials  used  in  the  construction  of  ships  here,  and  if  a 
preference  were  given  in  the  domestic  trade  to  American-built  vessels, 
those  three  measures  going  together  would  revive  our  shipping  and  com 
mercial  interests  ? 


56  NAVIGATION    INTERESTS. 

Mr.  POILLON.  Yes,  sir. 

Mr.  George  Opdyke,  banker,  and  vice-president  of  the  New  York 
Chamber  of  Commerce,  came  before  the  committee. 

The  CHAIRMAN.  The  committee  would  like  to  hear  any  suggestions 
that  you*  may  desire  to  make  in  reference  to  the  subject  of  inquiry, 
which  is  as  to  the  causes  operating  to  depress  our  navigation  interests 
and  as  to  the  remedies  needed  in  order  to  revive  them. 

Mr.  OPDYKE.  My  reflections  on  the  subject  of  the  depression  of  our 
shipping  interest  have  led  me  to  the  conclusion  that  the  present  de 
pression  is  mainly  due  to  three  causes :  The  first  is — and  perhaps  in  as 
large  a  degree  as  any  other — the  substitution  of  iron  for  wooden  vessels, 
and  of  steam  for  sailing  vessels.  Great  Britain  has  a  great  advantage 
over  this  country  in  the  lower  cost  of  iron  and  in  her  larger  experience 
in  its  manufacture.  The  English  can  build  of  iron  much  cheaper  than 
we  can.  When  vessels  were  built  mainly  of  wood  we  had  the  advantage 
of  the  English  in  consequence  of  the  superior  abundance  and  cheapness 
of  that  material  in  this  country.  In  machinery,  as  well  as  in  steam,  they 
have  the  advantage.  The  cheaper  labor  there  for  running  vessels  gives 
them  also  another  advantage.  The  second  cause  is  the  high  duty  charged 
upon  such  foreign  materials  as  enter  into  the  construction  of  our  ships. 
Ships,  after  they  are  built  in  this  country,  have  to  compete,  without  any 
protection,  with  the  ships  of  other  countries.  If  we  charge  a  high  duty 
on  the  materials  used  in  the  construction  of  our  ships,  their  cost  is  neces 
sarily  enhanced  to  that  extent.  And  after  they  are  finished,  unlike  our 
domestic  manufactures  that  are  sold  at  home,  our  ships  enter  on  the 
ocean  and  have  to  compete,  even,  without  any  protection,  with  the 
vessels  of  other  countries.  That  I  regard  as  a  most  onerous  exaction 
upon  our  shipping  interest,  and  one  that  has  done  much  to  cripple  it. 
Then  there  is  another  cause,  which  is  probably  temporary,  but  which, 
for  the  time  being,  has  been  more  potent  than  either  of  the  others  named : 
It  is  the  effect  of  the  premium  upon  specie.  We  know  that  everything 
bought  with  our  currency  at  home,  including  real  estate,  commodities  of 
all  kinds,  and  the  price  of  labor,  which  is  the  best  criterion  of  all,  is  on 
an  average  at  least  seventy-five  per  cent,  higher  than  it  was  under  our 
convertible  currency ;  so  that  we  are  building  ships  and  paying  for  mate 
rials  in  currency  at  an  enhanced  cost  of  seventy-five  per  cent.,  and  send 
ing  them  out  to  a  trade  where  the  business  is  done  upon  a  coin  basis, 
but  where  we  do  it  on  a  currency  basis.  You  see  at  once  what  an  enor 
mous  disadvantage  we  labor  under  in  competition  with  ships  built  for 
coin,  and  the  earnings  of  which  are  in  coin.  The  difference  between  the 
premium  on  gold  and  the  depression  of  currency — some  thirty-five  or 
forty  per  cent. — is  an  absolute  loss  to  that  interest.  That,  after  a  time, 
will  be  corrected.  The  difficulty  has  existed  since  the  war  in  consequence 
of  our  dropping  the  use  of  coin  as  currency,  save  in  a  few  of  our  transac 
tions,  and  lessening  the  demand  for  coin  at  home.  Our  securities  have 
gone  abroad  to  pay  the  adverse  balance  of  trade,  so  that  the  demand 
for  the  precious  inetals  in  this  country  has  not  been  equal  to  the  supply, 
and  this  has  kept  the  premium  far  below  the  price  of  other  things. 
That,  in  brief,  is  my  view  of  the  cause  of  the  present  depression. 

The  CHAIRMAN.  What  measures  would  you  suggest  for  the  improve 
ment  of  the  navigation  interest? 

Mr.  OPDYKE.  The  first  advantage  to  the  shipping  interest  would  be 
to  exempt  from  duty  all  materials  entering  into  the  construction  of  ships. 
I  have  long  felt  that  that  was  due  to  the  shipping  interest,  and  without 
it  I  do  not  think  that  we  can  ever  fully  or  successfully  compete  with 
foreign-built  vessels.  The  last  cause  will  correct  itself  very  soon.  It 


NAVIGATION    INTERESTS.  57 

does  not  need  any  legislation.  The  other  cause  is  more  difficult  to  over 
come,  and  I  fear  it  will  be  very  many  years  before  we  can  build  steam 
ships  of  iron,  such  as  are  now  controlling  nearly  all  the  ocean  trade, 
as  cheaply  as  they  can  be  built  in  Europe.  One  remedy  has  been  sug 
gested,  and  that  is  to  permit  foreign-built  vessels  to  have  American  reg 
istration,  and  to  make  absolute  free  trade  in  ships.  As  a  free-trader,  I 
am  inclined  to  believe  that  that  would  be  the  true  policy ;  but  so  long 
as  protection  is  the  policy  of  the  country,  we  can  scarcely  expect  an  ex 
ception  to  be  made  in  favor  of  the  shipping  interest.  It  is  one  of  the 
last  things  that  the  American  mind  will  accept.  But  if  we  had  a  policy 
of  absolute  free  trade,  which  I  think  would  result  in  great  benefit  to  the 
country,  (not  to  do  it  at  once,  but  to  do  it  gradually,)  then  I  would  em 
brace  with  it  ship-building,  and  the  purchase  and  the  sale  of  ships 
abroad.  The  granting  of  subsidies  is  another  remedy.  While  I  am  op 
posed  in  theory  to  all  government  subsidies,  it  would  seem  to  be  essen 
tial,  if  we  desire  to  control  the  maritime  commerce  that  properly  belongs 
to  us  on  important  lines,  that  our  government  should,  to  some  extent, 
follow  the  policy  of  Great  Britain  in  that  respect,  as  otherwise  we  can 
not  probably  successfully  compete  with  her.  How  far  that  policy  should 
go  I  am  not  prepared  to  say.  In  theory  I  am  opposed  to  it  altogether 
But  from  the  present  crippled  condition  of  our  commerce,  if  we  desire 
to  regain  the  position  that  we  once  held,  I  am  inclined  to  believe  that  it 
would  be  good  policy  for  the  government  in  proper  cases,  where  valua 
ble  lines  of  steamers  should  be  established  between  this  and  other  im 
portant  ports  of  other  nations,  to  meet  Great  Britain  with  her  own 
weapons  and  grant  subsidies  in  some  form. 

The  CHAIRMAN.  I  understand  you  to  say  that  you  are  in  favor  both 
of  exempting  materials  used  in  the  construction  of  ships  from  duty,  and 
also  of  amending  the  navigation  laws,  so  as  to  allow  the  registration  of 
foreign  ships? 

Mr.  OPDYKE.  As  an  ultra  free-trader  I  should  be  in  favor  of  that  ; 
but  that  is  not  the  policy  of  our  country,  and  I  should  not  be  in  favor 
of  it  unless  it  is  adopted  prospectively  as  the  policy  of  the  government 
in  reference  to  other  things.  I  mean  absolute  free  trade. 

The  CHAIRMAN.  At  first  you  would  be  in  favor  of  the  exemption  of 
materials  used  in  ship-building,  and  you  would  let  all  the  other  things 
follow  ? 

Mr.  OPDYKE.  Yes;  my  policy  would  be  to  abandon  gradually  the 
whole  protective  policy  of  the  country — not  suddenly,  which  would  be 
disastrous  to  many  interests  and  unjust  to  them,  but  by  a  system  of 
gradations  extending  over  ten  or  twenty  years,  so  as  ultimately  to  get 
out  of  this  false  system  altogether.  The  navigation  laws  stand  upon 
the  principle  of  reciprocity  and  are  an  absolute  necessity  for  every  mari 
time  nation.  We  cannot,  for  example,  permit  other  vessels  to  coine  and 
join  in  our  coasting  trade,  and  to  come  into  our  ports  and  be  exempt 
from  the  charges  and  duties  to  which  our  vessels  are  subject  in  the  ports 
of  other  countries,  except  on  the  principle  of  reciprocity.  It  would  never 
do,  therefore,  to  repeal  the  navigation  laws,  even  with  absolute  free 
trade.  They  are  always  necessary. 

Mr.  HOLMAN.  Taking  those  three  subjects  in  connection :  the  rebate 
of  the  taxes,  internal  and  external,  on  materials  entering  into  the  con 
struction  of  ships ;  free  trade  in  ships  built  abroad ;  and  the  giving  to 
ships  built  in  America  the  preference  in  our  domestic  trade — what  effect 
would  those  three  measures  together  have,  probably,  upon  our  commerce? 

Mr.  OPDYKE.  I  take  it  that  they  would  give  us  the  supremacy  of  the 
sea.  The  American  people  have  more  aptitude  for  maritime  commerce 


58  NAVIGATION   INTERESTS. 

than  any  other  people  in  the  world,  and  all  that  they  want  is  an  oper 
field  and  fair  competition  to  win  that  supremacy.  I  mean  by  the 
"  supremacy  of  the  sea"  that  we  should  have  a  larger  maritime  commerce 
than  any  nation  in  the  world. 

The  CHAIRMAN.  What  effect  would  those  measures  have  upon  oui 
ship-building  interests  ? 

Mr.  OPDYKE.  My  impression  is  that  they  would  greatly  diminish  the 
building  of  ships  in  this  country  for  a  period.  How  long  that  period 
would  last  would  depend  on  circumstances. 

The  CHAIRMAN.  In  your  opinion,  is  there  not  some  protection  needed 
for  a  period  to  our  ship-building  interest  from  foreign  competition,  in 
order  to  overcome  the  disadvantages  under  which  it  has  labored  for  a 
few  years  past,  and  the  advantages  which  foreigners  have  acquired  by 
that  condition  of  things  ? 

Mr.  OPDYKE.  In  my  opinion  there  is  no  means  of  protecting  the  ship 
building  interest  successfully  except  by  the  granting  of  bounties.  Our 
ships  have  to  compete  with  the  ships  of  other  nations,  and  inasmuch  as 
we  have  not  the  same  advantages  for  building  ships  as  cheaply  in  this 
country  as  they  have  in  Europe,  the  only  way  that  the  government,  by 
its  interference,  can  annul  that  advantage  possessed  by  foreigners,  would 
be  by  the  granting  of  a  bounty. 

The  CHAIRMAN.  You  mean  by  "the  granting  of  a  bounty ,"  the  exemp 
tion  from  duty  of  the  materials  employed  in  the  construction  of  ships  ? 

Mr.  OPDYKE.  That  in  itself  would  not  be  sufficient  at  present,  on 
account  of  the  superior  advantages  of  Europe  in  the  construction  of  iron 
vessels  and  of  steam  machinery,  and  in  consequence  of  the  cheaper  labor 
there,  and  also  in  consequence  of  the  marked  difference  between  the 
value  of  coin  and  paper  money.  The  purchasing  powers  are  different. 

The  CHAIRMAN.  The  statement  of  steam  engineers  yesterday  was  that 
we  can  now  build  steam-engines  as  cheaply  as  they  can  be  built  in 
Europe. 

Mr.  OPDYKE.  I  am  not  sufficiently  informed  in  regard  to  that ;  but 
judging  from  all  other  fabrics  of  metal,  such  as  rails  for  railroads,  and  a 
thousand  other  things  of  import  paying  a  very  heavy  duty  on  tjiem  and 
competing  with  our  home  productions,  I  am  satisfied  that  England  has 
great  advantages  over  us.  The  rebate  of  duties  upon  foreign  materials 
entering  into  the  construction  of  ships  is  no  protection  whatever.  It 
simply  puts  the  American  builder  upon  the  same  platform  with  his  foreign 
competitor.  The  ships  would  cost  our  people  precisely  the  same  as  they 
cost  the  people  of  England.  And  then,  besides,  we  labor  under  the  dis 
advantage  of  a  difference  of  thirty-five  per  cent,  between  the  purchasing 
power  of  gold  and  of  paper  money. 

Mr.  HOLMAN.  Do  the  nations  which  admit  foreign-built  vessels  to 
their  registration  exclude  them  from  their  domestic  trade  ! 

Mr.  OPDYKE.  I  am  ignorant  of  the  policy  of  other  nations  in  regard 
to  registration ;  but  if  England  and  France  do  admit  foreign-built  ships 
to  registration,  I  suppose  they  put  them  on  the  same  basis  as  their  own 
ships  in  regard  to  the  coasting  trade. 

Mr.  HOLMAN.  Supposing  that  to  be  a  fact,  taking  into  consideration 
the  extent  of  our  coasting  trade  in  connection  with  our  foreign  commerce, 
if  you  exempt  from,  duty  the  materials  entering  into  the  construction  of 
ships,  and  give  American-built  ships  the  exclusive  control  of  the  domes 
tic  trade,  and  supposing  the  duty  on  the  main  material  entering  into  the 
construction  of  ships  amounted  to  thirty-five  per  cent.,  would  not  the 
protection  to  the  American  builder  be  equal  to  forty-five  per  cent,  in  the 
construction  of  ships? 


NAVIGATION    INTERESTS.  59 

Mr.  OPDYKE.  If  I  properly  apprehend  the  question,  I  cannot  say  that 
it  would.  There  is  another  view,  suggested  by  your  question,  which  is 
a  very  important  one :  If  we  should  admit  foreign -built  vessels  to  register 
here  and  put  them  on  an  equality  with  our  own  American-built  vessels 
in  our  coasting  trade,  I  think  the  effect  would  not  fail  to  be  injurious  to 
American  ship-building. 

Mr.  HOLMAN.  Can  you  state  the  relation  which  our  domestic  shipping 
interests  bear  at  this  time  to  our  foreign  shipping  interest  ? 

Mr.  OPDYKE.  I  suppose  that  our  coastwise  trade  is  at  least  three-fourths 
of  our  whole  trade,  because  our  shipping  interest  in  foreign  commerce 
is  very  small. 

The  CHAIRMAN.  Have  you  ever  had  anything  to  do  with  the  building 
of  ships,  or  have  you  ever  contracted  to  have  them  built  for  you  ? 

Mr.  OPDYKE.  No,  sir. 

The  CHAIRMAN.  Have  you  ever  owned  or  sailed  ships  ! 

Mr.  OPDYKE.  I  have  had  a  very  small  interest  in  ships,  but  I  have 
not  at  present.  I  believe  if  anything  is  done  in  the  way  of  admitting 
foreign-built  vessels  to  registration,  it  should  be  on  the  condition  that 
they  should  be  only  employed  in  the  foreign  commerce.  I  do  not  believe 
that  the  government  or  the  people  will  ever  permit  foreign-built  vessels 
to  participate  in  our  domestic  trade.  That  is  a  prize  of  our  own  which 
we  have  a  right  to  make  the  most  of. 

Mr.  HOLMAN.  Agricultural  people,  however,  may  take  one  view  of 
that  subject,  and  the  strictly  commercial  and  manufacturing  interests  of 
the  country  may  take  a  different  view. 

NEW  YORK,  October  16, 18G9. 

Mr.  HOWLAND,  of  the  firm  ofHowland  &  Frothingham,  shipping  mer 
chants  of  New  York,  stated  as  his  opinion  that  the  loss  of  American 
commerce  resulted  from  various  causes  :  First,  that  there  is  less  carry 
ing  than  heretofore ;  second,  that  there  is  a  superabundant  supply  of 
tonnage  in  proportion  to  the  business ;  and  third,  on  account  of  the 
accident  of  the  late  civil  war,  which  gave  to  foreigners  an  advantage  in 
shipping  business,  and  in  fact  gave  them  the  track  for  the  time  being, 
and  which  he  believed  they  would  always  keep.  He  did  not  see  any 
thing  to  prevent  it.  Foreigners  could  build  their  ships  cheaper  than 
Americans,  and  could  sail  them  cheaper,  and  their  ships,  he  thought, 
were  better  managed.  They  had  better  seamen,  and  better  officers,  as  a 
class,  than  Americans.  Their  iron  ships  were  improving,  whereas 
American  wooden  vessels  were  growing  old  and  out  of  date.  Iron  was 
superseding  wood  for  ships,  and  must  take  the  place  of  wood  for  the 
reason  that  it  was  much  more  economical.  It  would  be  some  years,  he 
thought,  before  the  United  States  would  be  able  to  cope  with  Great 
Britain  in  building  iron  ships,  because  the  English  had  had  a  longtime 
to  organize  and  to  systematize  their  business,  so  that  they  could  now 
build  ships  almost  in  a  day.  He  was  a  ship-owner  and  had  been  a  ship 
master.  His  ships  had  always  sailed  under  the  American  flag.  They 
were  American-built  wooden  ships.  He  had  no  iron  ships. 

The  CHAIRMAN.  What  advantage  do  you  consider  the  iron  ship  has 
over  the  wooden  ship  ? 

Mr.  HOWLAND.  Economy  throughout.  An  iron  ship  carries  her  cargo 
much  safer  and  with  less  damage.  The  only  in  convenience  is  the  not 
being  able  to  metal  the  bottom.  But  there  is  no  wear  and  tear.  They 
are  twenty-year  ships. 

The  CHAIRMAN.  Is  not  the  matter  of  fouling  the  bottoms  of  iron 
ships  a  serious  one  ? 


60  NAVIGATION   INTERESTS. 

Mr.  HOWLAND.  Yes;  but  they  are  getting  over  it.  Barnacles  will 
grow  on  the  bottoms  of  iron  ships  very  rapidly  in  tropical  climates. 

The  CHAIRMAN.  Do  I  understand  you  to  say  that  the  English  sail 
their  ships  cheaper  than  we  do? 

Mr.  ROWLAND.  No,  not  cheaper.  They  carry  more  men  than  we  do. 
They  are  required  by  law  to  have  twenty-five  per  cent,  more  men  than 
we  carry.  They  can  sail  cheaper  because  they  buy  all  their  outfits  in 
bond,  free  of  duty ;  and  not  only  that,  but  their  wages  are  lower.  I  do 
not  see  that  it  is  possible  for  us  to  compete  with  them  under  our  present 
federal  and  State  laws.  So  long  as  sailor  landlords  here  have  charge  of 
manning  our  ships  they  have  it  all  their  own  way.  and  we  cannot  expect 
wages  to  be  any  lower  than  now.  A  ship-owner  has  no  control  of  his 
vessel  in  that  respect.  My  impression  is  that  it  will  be  some  years  be 
fore  we  can  compete  fairly  with  foreign  countries. 

The  CHAIRMAN.  Do  you  believe  that  if  the  materials  entering  into 
the  construction  of  vessels  were  admitted  free  of  duty,  we  could  build 
ships  here  in  competition  with  English  ship-builders  1 

Mr.  HOWLAND.  We  could,  after  a  certain  length  of  time ;  but  I  think 
it  would  require  a  few  years  first,  to  build  up  our  prestige  again.  We 
must  use  machinery  in  building  iron  ships,  and  it  will  be  some  time 
before  we  are  fairly  started.  Then,  again,  there  is  another  difficulty  to 
contend  with.  The  shipping  interest  is  not  a  favorite  interest  with 
investors.  On  the  contrary,  it  is  probably  the  poorest  interest.  No 
man  will  invest  in  a  ship  unless  it  pays  him  at  least  as  much  interest 
as  other  investments ;  and  as  to  outsiders,  who  used  to  own  small  in 
terests  in  ships,  you  can  hardly  find  any  person  now  in  the  city  of  New 
York  to  make  such  an  investment,  because  it  is  considered  a  poor  one. 
A  man  puts  his  money  into  a  ship,  and  there  it  must  remain.  He  puts 
it  entirely  out  of  his  own  hands,  and  has  not  the  least  power  over  it. 

The  CHAIRMAN.  Has  it  not  been  usual  for  ship-builders  to  get  up  par 
ties  to  make  a  company  for  the  ownership  of  the  vessel  1 

Mr.  HOWLAND.  That  was  done  not  so  much  by  the  builder  as  by  the 
agents.  The  agent  would  endeavor  to  make  up  capital  for  the  ship. 
The  builder  would  generally  take  an  interest  in  it.  There  Av>uld  be 
generally  eight  or  ten  owners  of  the  ship ;  but  now  it  is  almost  impos 
sible  to  get  any  man,  who  knows  the  history  of  our  shipping  interests 
for  the  last  six  or  eight  or  ten  years,  to  put  his  money  into  a  ship.  There 
is  nothing  to  warrant  him  in  doing  it.  There  is  no  encouragement.  I 
think,  however,  that  if  all  the  duties  were  removed  from  ship-building 
materials,  and  if  ship's  stores  could  be  taken  out  of  bond  free  of  duty, 
these  measures  would  be  the  best  that  could  be  adopted. 

Mr.  CALKIN.  Previous  to  the  war,  when  ships  could  be  built  as  cheap 
here  as  in  England,  and  when  the  carrying  trade  was  gogd,  is  it  not  a 
fact  that,  all  along  our  sea-coast  and  in  our  large  seaport  cities,  there 
were  many  men  who  amassed  large  fortunes  in  running  ships  ? 

Mr.  HOWLAND.  Not  large  fortunes.  Many  have  made  comfortable 
fortunes.  I  do  not  know  of  any  one  who  made  a  large  fortune  in  this 
city  by  running  ships,  whatever  may  have  been  the  case  in  the  East. 
But  what  has  been  is  evidently  not  Avhat  is  now,  or  what  is  likely  to  be. 
I  do  not  see  any  encouragement  for  building  ships,  except  we  can  build 
them  and  sail  them  as  cheap  as  other  nations.  And  we  are  worse  off  in 
that  respect  in  regard  to  steamers  than  we  are  in  regard  to  sailing  ves 
sels,  for  there  is  the  strongest  competition  in  steamers. 

The  CHAIRMAN.  Would  you  be  in  favor  of  an  abrogation  of  the  nav 
igation  laws  as  a  means  of  restoring  our  shipping  interest  ? 


NAVIGATION    INTERESTS.  61 

Mr.  ROWLAND.  I  should  not.  I  should  be  in  favor  of  throwing  off  all 
restrictions  and  duties  on  building  materials. 

The  CHAIRMAN.  You  would  be  in  favor  rather  of  building  ships  at 
home  than  of  buying  them  from  abroad  ? 

Mr.  ROWLAND.  Certainly.  The  foreigners  have  got  our  carrying 
trade  now ;  and  if  we  pay  them  for  making  our  ships,  and  even  after 
that  cannot  compete  with  them  for  the  carrying  trade,  we  would  be 
worse  off  than  we  are  now.  Then,  again,  that  would  endanger  our 
coasting  trade,  for,  once  they  get  in  the  entering-wedge,  we  do  not 
know  where  they  would  stop.  The  right  to  buy  and  register  foreign- 
built  ships  would  benefit  a  certain  class  of  people,  such  as  commission 
merchants  and  shipping  agents  for  British  ship-owners ;  but  it  would 
not  benefit  our  mechanics  or  ship-owners.  On  the  contrary,  it  would  be 
a  prejudice  to  our  coasting  trade,  which  has  saved  our  shipping  interest 
for  the  last  five  or  six  years. 

Mr.  HOLMAN.  What  would  be  the  effect  on  our  commerce  alone  (with 
out  reference  to  the  question  of  ship-building)  of  allowing  foreign  built 
vessels  to  obtain  American  registers,  and  of  excluding  them  from  the 
coastwise  trade  f 

Mr.  HOWL  AND.  It  would  increase  competition. 

Mr.  HOLMAN.  Would  it  increase  largely  ship-owning  in  the  United 
States  ? 

Mr.  HOWLAND.  I  do  not  think  it  would ;  because  I  think  there  is 
already  tonnage  enough  for  the  business  of  the  world.  I  do  not  believe 
that  we  would  increase  our  tonnage ;  but,  at  the  same  time,  many  ves 
sels  might  come  under  the  American  flag. 

Mr.  HOLMAN.  Suppose  that  a  duty  of  twenty-five  per  cent,  (the  lowest 
average  of  duties  on  manufactures)  were  imposed  on  vessels  purchased 
abroad  by  American  citizens,  so  as  to  entitle  them  to  American  registry, 
would  such  a  policy  increase  the  ship-owning  interest  in  the  United 
States? 

Mr.  HOWLAND.  I  should  think  not,  because  that  would  bring  ships 
quite  as  high  as  they  could  be  built  for  at  home. 

Mr.  HOLMAN.  Do  you  know  any  good  reason  why  a  different  protect 
ive  policy  should  be  extended  to  the  ship-building  interest  from  that 
extended  to  any  other  manufacturing  interest  in  this  country  ? 

Mr.  HOWLAND.  I  do  not.  I  think  myself  that  the  allowance  of  draw 
back  of  duties  on  ship-building  materials  would  be  inconsistent,  and  an 
exception  to  the  general  rule.  I  dp  not  think  that  we  have  a  right  to 
claim  free  trade  in  ships  more  than  in  anything  else. 

Mr.  HOLMAN.  Is  there  any  national  interest  connected  with  the  sub 
ject  at  all,  except  it  may  be  that  of  having  facilities  for  the  construction 
of  vessels  for  war  purposes  in  case  of  emergency  ?  Is  there  any  other 
reason  to  discriminate  in  favor  of  that  particular  branch  of  industry  in 
preference  to  others  ? 

Mr.  HOWLAND.  I  do  not  see  any. 

Mr.  HOLMAN.  To  what  extent  ought  it  to  be  the  policy  of  a  nation 
like  this  to  afford  peculiar  protection  to  the  ship-building  industry,  with 
reference  to  securing  available  means  for  the  prompt  construction  of 
war- vessels  ? 

Mr.  HOWLAND.  I  should  think  to  no  great  extent  at  this  time,  because 
high  wages  will  bring  all  the  men  that  we  want  for  our  navy. 

Mr.  HOLMAN.  Supposing  that  iron  vessels  supersede  entirely  wooden 
vessels,  (as  may  possibly  be  the  result  in  the  course  of  time,)  in  the 
event  of  an  emergency  and  necessity  for  the  rapid  construction  of 
ships — taking  into  consideration  the  various  branches  of  industry  con- 


62  NAVIGATION    INTERESTS. 

nected  with  iron  manufactures — if  the  government  did  not  specially  pro 
tect  its  ship-building  interests,  would  there  be  a  trouble  in  the  construc 
tion  of  ships  resulting  from  the  absence  of  skilled  workmen  in  that 
branch  of  industry  f 

Mr.  HOWLAND.  Yes ;  I  should  think  that  that  might  have  an  effect, 
because  it  would  spread  into  other  pursuits  all  over  the  country  the 
mechanics  now  engaged  in  ship-building,  so  that  the  government  could 
not  avail  itself  of  their  services. 

Mr.  HOLMAN.  Is  the  art  of  ship-building  so  peculiar  and  exclusive 
that  you  could  not  readily  get  together  bodies  of  skilled  workmen  to 
construct  ships,  even  if  they  had  not  been  specially  employed  in  that 
particular  branch  of  industry  ? 

Mr.  HOWL  AND.  I  take  it  for  granted  that  all  house  carpenters,  after 
a  little  practice,  could  go  in  and  assist  in  building  ships.  Still,  every 
man  to  his  business  and  trade.  I  do  not  apprehend,  however,  that  it 
would  affect  the  government  much,  one  way  or  other,  whether  we  build 
iron  ships  or  wooden  ships.  If  ships  were  to  be  built  rapidly,  they 
would  be  probably  wooden  ships,  because  iron  ships  cannot  be  built  so 
rapidly. 

The  CHAIRMAN.  If  I  understand  Mr.  Holman's  question,  it  is  whether 
there  is  any  real  necessity  for  a  nation  to  have  an  educated  class  of 
skilled  workmen  for  the  construction  of  ships,  or  whether  that  is  a  mat 
ter  that  can  be  improvised  at  once,  at  any  time — whether  ship-building 
is  really  an  art  to  be  cultivated  and  that  requires  time  and  experience, 
or  whether  workmen  in  any  other  business  can  be  set  to  \vork  at  it? 

Mr.  HOWLAND.  I  should  think  it  necessary  to  have  men  trained  to 
the  business. 

The  CHAIRMAN.  We  have  always  been  a  ship-building  nation  ? 

Mr.  HOWLAND.  Always. 

Mr.  HOLMAN.  And  would  be,  under  any  policy  ? 

Mr.  HOWLAND.  Undoubtedly. 

Mr.  JAMES  W.  ELWELL,  a  member  of  the  Ship-owners'  Association, 
stated  that  he  had  been  a  ship-owner  and  a  ship-agent  for  over  thirty  years. 
During  the  Mexican  war  and  the  famine  in  Ireland  there  had  been  a 
great  stimulus  given  to  ship-building,  and  American  tonnage  had  in 
creased  very  rapidly,  because  the  few  ships  then  employed  were  finding 
remunerative  business.  Up  to  1854-'56  so  many  people  entered  into  the 
building  of  ships  that  the  market  became  overstocked  and  the  owners 
suffered  great  losses.  Then  the  commercial  panic  of  185 7  depreciated 
the  shipping  business  very  much.  Afterward  a  market  was  found  for 
American  shipping  in  England,  on  the  continent,  and  in  the  East  Indies. 
This,  and  the  business  resulting  from  the  new  article  of  guano,  again 
stimulated  the  building  of  ships.  Up  to  the  commencement  of  the  late 
war  the  size  and  number  of  American  ships  had  been  increasing,  and 
finer  ships  were  being  built.  During  the  war  the  foreign  demand  for 
American  ships  increased,  owing,  a  good  deal,  to  the  difference  in  the 
value  of  gold  and  currency,  and  a  large  number  of  ships,  especially 
those  advanced  in  years,  were  sold  abroad.  Very  few  ships  were  built 
here  at  the  same  time,  on  account  of  the  great  cost  of  materials  and 
labor;  and  as,  in  addition  to  these  causes,  many  ships  had  naturally 
been  lost,  American  tonnage  had  decreased  very  materially — perhaps 
fifty  per  cent.  The  burden  of  the  ship-owners  now  consisted  in  the 
increased  cost  of  building  and  equipping  vessels,  and  in  the  increased 
expense  of  running  them.  The  present  expense  of  the  labor  part — 
loading  and  unloading  vessels — and  of  the  mechanical  part,  for  repairs, 
was,  on  an  average,  two  hundred  or  three  hundred  per  cent,  over  what 


NAVIGATION    INTERESTS.  63 

it  was  before  the  war.  For  instance,  the  stevedore's  bill,  which  nsed  to 
be,  say,  $500,  would  be  now  from  $1,200  to  $1,500. 

The  CHAIRMAN  remarked  that  that  applied  to  all  vessels,  native  and 
foreign. 

Mr.  EL  WELL  assented,  but  remarked  that  foreign  vessels  kept  their  own 
crews,  and  did  the  work  with  them,  whereas  American  vessels  did  not. 
Then  the  cost  of  repairs  had  increased  so  largely  that  the  yearly  in 
surance  on  a  ship,  which  was  formerly  from  seven  to  eight  per  cent.,  was 
now  from  twelve  to  fourteen  per  cent.  The  cost  of  building  vessels  now 
was  not  so  great  in  proportion  as  it  was  during  the  war.  Ships  that 
cost,  during  the  war,  $100  per  ton  in  currency,  could  now  be  built  for 
from  $65  to  $70.  His  impression  was,  that  if  there  were  a  drawback 
of  duties  allowed  on  all  ship-building  materials,  American  ship-builders 
could  build  ships  and  make  a  small  profit  on  them.  Then  the  ship 
owner  should  be  allowed,  as  in  other  nations,  to  buy  his  outfit  and 
equipments,  including  provisions,  in  bond.  Then  he  thought  that 
Americans  could  compete  with  foreigners  in  the  carrying  trade  of  the 
world.  At  present  the  largest  proportion  of  the  repairs  of  American 
ships  is  done  abroad,  and  outfits  of  all  kinds  were  purchased  abroad, 
thus  causing  large  American  expenditures  to  be  made  on  the  other  side 
instead  of  at  home.  Every  two  or  three  years  a  ship  required  a  general 
overhauling,  and  this  was  done  abroad  now,  as  well  by  American  as  by 
foreign  vessels,  taking  a  large  amount  of  employment  from  American 
mechanics  and  giving  it  to  foreign  mechanics. 

The  CHAIRMAN  inquired  whether  foreign  vessels  had  any  advantage  in 
that  respect  over  American  vessels  running  in  the  same  trade,  inasmuch 
as  the  former  had  to  employ  American  mechanics  just  as  much  as  the 
latter  had  to  employ  foreign  mechanics. 

Mr.  KLWELL  replied  that  the  ship-owner  made  repairs  on  his  ship 
where  he  could  do  them  most  cheaply,  but  that  still,  as  a  general  thing, 
an  American  ship-owner  preferred  to  have  his  repairs  done,  if  possi 
ble,  at  home,  even  at  an  advanced  cost,  because  he  could  have  them 
done  under  his  own-  eye  and  supervision.  The  item  of  drawing  stores 
and  supplies  free  of  duty  was  a  very  important  matter  to  ship-owners. 
Americans  had  that  privilege  in  England,  but  were  liable  to  be  called 
upon  at  home  to  pay  duty  on  any  excess  of  stores  that  they  might  have 
on  board. 

The  CHAIRMAN.  Do  you  think  that  the  remission  of  duties  on  ship 
building  materials  would  tend  to  restore  American  shipping  ? 

Mr.  ELWELL.  I  think  it  would,  very  materially.  It  would  produce  an 
interest  in  ship-building  which  would  grow  as  fast  as  the  country  would 
require  it. 

The  CHAIRMAN.  Are  you  in  favor  of  the  repeal  of  the  navigation 
laws  as  a  means  of  restoring  our  commerce  ? 

Mr.  ELWELL.  Not  at  present.  I  do  not  think  that  the  country  is  pre 
pared  to  take  that  measure  yet.  I  think  it  could  have  been  done  years 
ago  with  more  propriety  than  it  could  be  now.  And  it  may  again,  years 
hence.  Still,  there  might  be  an  import  duty  imposed  on  vessels  the 
same  as  on  merchandise.  But  even  that  would  be  objectionable,  as  it 
would  burden  commerce  with  a  great  many  old  vessels  at  low  cost, 
unless  there  was  a  specific  duty  imposed  of  so  much  per  ton,  without 
regard  to  the  age  or  quality  of  the  vessel.  This,  too,  would  be  liable  to 
a  great  deal  of  fraud  and  of  objection. 

Mr.  HOLMAN.  To  what  extent,  under  that  policy,  would  our  people 
become  ship-owners  more  than  they  are  now  ? 

Mr.  ELWELL.  It  is  difficult  to  answer  that  question,  as  I  think  that  a 


64  NAVIGATION   INTERESTS. 

large  portion  of  our  ships  might  be  owned  in  other  nations,  though 
really  sailing  under  the  American  flag. 

The  CHAIRMAN.  Then  you  think  that  it  would  lead  to  foreign  owner 
ship? 

Mr.  ELWELL.  Yes,  sir. 

The  CHAIRMAN.  For  the  purpose  of  obtaining  the  benefit  of  oui 
coastwise  trade  ? 

Mr.  ELWELL.  Yes,  sir. 

Mr.  HOLMAN.  Supposing  our  coastwise  trade  to  be  at  present  equal 
to  three-fourths  of  our  entire  commerce  carried  on  by  American  citizens, 
how  would  these  three  measures,  taken  together — the  relief  to  the  ship 
builder  to  the  extent  of  a  rebate  of  internal  and  external  duties  on  all 
materials  entering  into  the  construction  of  ships,  free  trade  in  foreign-built 
vessels,  only  excluding  them  from  the  coastwise  trade,  and  giving  to  the 
home-built  ships  the  exclusive  right  to  that  trade — affect,  first,  the  com 
merce  of  the  country,  and  second,  the  ship-building  interest  ?  Would 
they  promote  or  diminish  either  ? 

Mr.  ELWELL.  They  would  promote  the  commerce  of  the  country,  and 
they  would  promote  the  ship-building  interest,  if  the  time  for  allowing 
foreign-built  ships  to  be  owned  and  registered  here  were  postponed  until 
our  own  ship-builders  could  commence  operations.  If  that  time  were 
not  postponed,  foreigners  would  come  in  at  once  and  fill  up  all  the 
gaps  in  the  way  of  commercial  lines  from  place  to  place,  before  oui 
people  were  prepared.  I  think  that,  in  the  course  of  a  few  years,  our 
people  would  be  prepared,  and  that  then  we  could  compete  with  other 
nations  in  building  ships,  whether  with  free  trade  or  not. 

Mr.  HOLMAN.  Taking  into  account  the  rebate  of  tax  on  materials 
entering  into  the  construction  of  ships — internal  revenue  as  well  as 
external — and  the  exclusive  benefit  of  the  domestic  commerce  to  Ameri 
can-built  vessels,  what  would  be  the  approximate  extent  of  protection  to 
the  American  ship-builder  resulting  from  these  two  things  together  ? 

Mr.  ELWELL.  It  would  vary  from  ten  to  fifteen  per  cent,  on  the  value 
of  the  ship.  It  would  be  more  on  iron  vessels  than  on  wooden  ones, 
because  there  would  be  a  greater  rebate  of  duty  on  the  former.  It  would 
not  be  over  from  ten  to  fifteen  per  cent.  Our  labor  here  is  higher  than 
it  is  abroad.  Our  ship-builders  are  ready  to  contract  for  a  ship  of  one 
thousand  tons,  and  would  be  satisfied  with  a  profit  of  from  $2,000  to 
$3,000  for  their  superintendence  and  the  use  of  their  tools  and  yards. 

Mr.  WELLS.  Have  you  any  means  of  knowing  the  proportions  of  our 
domestic  and  foreign  commerce  ? 

Mr.  ELWELL.  I  should  think  that  forty  per  cent,  of  our  tonnage  goes 
to  foreign  ports,  and  that  sixty  per  cent,  is  engaged  in  the  domestic 
trade.  The  coastwise  trade  is  not  of  so  much  importance  for  the  last 
two  or  three  years  as  it  was  formerly.  There  used  to  be  ten  or  eleven 
lines  to  New  Orleans,  each  line  employing  five  or  six  ships  5  whereas  now 
there  is  not  a  regular  line  of  sailing-ships  to  New  Orleans.  The  domestic 
carrying  trade  is  now  done  a  good  deal  by  the  laud  lines  of  transporta 
tion  instead  of  by  sea. 

Mr.  HOLMAN.  Is  not  the  tonnage  employed  in  the  domestic  trade 
increasing  ? 

Mr.  ELWELL.  I  should  think  it  is.  Since  the  close  of  the  war  a  good 
deal  of  trade  has  been  opened  in  the  South.  So  far  as  large  ships  are 
concerned,  our  domestic  trade,  except  the  California  trade,  is  of  very 
little  consideration.  The  California  trade  employs  large  ships,  otherwise 
there  would  be  very  little  business  for  them.  The  domestic  trade  is 
mostly  done  by  a  small  class  of  vessels,  and  by  steamers. 


NAVIGATION   INTERESTS.  65 

Mr.  HOLMAN.  But  these  vessels  require  the  ship-yards  to  be  kept  up, 
and  enter  largely  into  the  profits  of  ship-builders  f 

Mr.  ELWELL.  Our  coasting  trade  has  not  been  profitable. 

Mr.  HOLMAN.  Do  you  attribute  the  falling  off  in  that  trade  to  inland 
land  transportation  f 

Mr.  ELWELL.  Yes,  sir  5  there  has  been  an  entire  change.  We  used 
to  bring  all  our  tobacco,  cotton,  lead,  &c.,  from  St.  Louis  and  Cincin 
nati  by  water,  and  vice  versa,  but  now  they  all  go  by  land. 

Mr.  HOLMAN.  Suppose  that  our  tonnage  in  1860  was  something  over 
five  million  tons,  what  proportion  of  that  would  naturally,  in  these  nine 
years,  have  been  taken  off  by  the  use  of  inland  land  routes  ? 

Mr.  ELWELL.  I  should  say  that  the  coastwise  trade  is  not  over  one- 
half  of  what  it  was  previous  to  the  war.  It  may  not  be.  over  a  third. 

The  CHAIRMAN.  I  understand  you  to  represent  the  Ship-owners'  Asso 
ciation  ? 

Mr.  ELWELL.  Yes. 

The  CHAIRMAN.  That  association  had  a  meeting  and  passed  some 
resolutions,  and  appointed  a  committee,  of  which  you  were  a  member  f 

Mr.  ELWELL.  Yes. 

The  CHAIRMAN.  How  many  were  present  at  that  meeting  ? 

Mr.  ELWELL.  Perhaps  between  a  dozen  and  twenty — about  as  many 
as  generally  attend  the  meetings  of  the  Chamber  of  Commerce — out  of 
a  thousand  members. 

The  CHAIRMAN.  My  ebject  is  to  ascertain  how  full  an  expression  of 
opinion  it  was.  To  what  extent  do  the  ship-owners  of  the  country  (not 
the  ship-builders)  favor  a  more  liberal  policy  with  regard  to  granting 
American  registry  to  foreign-built  vessels  ? 

Mr.  ELWELL.  I  should  think  they  were  about  equally  divided.  They 
are  all  unanimous  in  favor  of  some  legislation  to  relieve  the  shipping 
interest ;  but  I  should  think  there  was  not  a  majority  of  them  in  favor 
of  free  trade  in  ships. 

The  CHAIRMAN.  Suppose  the  policy  were  adopted  of  relieving  the  ma 
terials  entering  into  the  construction  of  ships  of  all  duty,  what  then,  in 
your  judgment,  would  be  the  opinion  of  the  majority  of  the  ship-owners 
in  reference  to  admitting  foreign  ships  to  American  registry  ? 

Mr.  ELWELL.  I  do  not  think  that  at  present  there  would  be  a  largo 
majority  in  favor  of  it.  The  one  measure  would,  of  course,  increase  the 
number  in  favor  of  the  other  5  but  I  do  not  think  that  that  would  satisfy 
all  parties. 

The  CHAIRMAN.  But  you  think  there  would  be  a  majority  in  favor  of 
excluding  foreign  ships  from  American  registry  I 

Mr.  ELWELL.  I  do ;  but  I  think  that,  after  a  few  years,  it  could  be 
done  with  greater  unanimity  of  feeling  among  the  ship-owners  and  ship 
builders,  and  all  connected  materially  with  the  interest  of  ship-building. 
Their  attention  is  turned  now  to  the  building  of  iron  ships;  and  it  will 
require  two  or  three  years  to  get  up  all  the  machinery  and  appliances  to 
build  them. 

Mr.  PAUL  M.  SPOFFORD,  ship-owner,  expressed  the  opinion  that  there 
were  various  causes  operating  to  produce  depression  in  the  American 
shipping  interest.  Among  them  were  the  system  of  subsidies  granted 
by  foreign  governments  to  their  lines  of  mail  steamers,  which  had  built 
up  their  steam  marine  at  the  expense  of  that  of  the  United  States,  and 
the  very  great  cost  of  constructing  and  navigating  American  ships. 
He  did  not  know  but  that  these  were  among  the  chief  causes.  If  it 
were  the  policy  of  this  government  to  revive  the  commerce  of  the  coun 
try,  he  thought  that  it  would  be  conducive  to  that  end  to  allow  Ameri- 
5  NI 


66  NAVIGATION    INTERESTS. 

cans  to  purchase  ships  wherever  they  could  be  bought  cheapest,  and 
to  allow  those  ships  to  American  registry.  He  thought  that  the  Amer 
ican  ship-owner  should  not  be  compelled  to  use  American  ships  at  the 
high  price  that  he  has  now  to  pay  for  them,  when  he  had  to  come 
into  competition  for  trade  with  foreign  ships.  He  thought  it  also  de 
sirable  that  on  the  materials  used  in  ship-building  there  should  be  a 
rebate  of  duty.  The  duty  should  either  be  entirely  taken  off,  or  only  a 
small  duty  charged,  so  that  American  ship-builders  might  have  an 
opportunity  of  competing  on  more  favorable  terms  than  they  had  at 
present. 

The  CHAIRMAN.  I  understand  you  to  be  in  favor  of  the  abrogation  of 
the  navigation  laws  ? 

Mr.  SPOFFORD.  I  should  be  in  favor  of  the  abrogation  of  the  naviga 
tion  laws  so  as  to  permit  American  citizens  to  purchase  foreign-built 
ships  and  run  them  wherever  they  pleased.  But  I  should  not  be  in 
favor  of  allowing  the  foreigner  to  engage  in  the  coasting  trade  with  a 
foreign  ship. 

The  CHAIRMAN.  If  foreign-built  ships  were  admitted  to  American 
registry,  and  if  three-fourths  of  the  vessel  were  owned  by  English  and 
the  other  fourth  by  the  nominal  owner,  an  American,  would  not  three- 
fourths  of  that  ship's  profit  in  the  coasting  trade  go  to  the  other  side  of 
the  water? 

Mr.  SPOFFORD.    I  presume  so. 

The  CHAIRMAN.  Would  there  be  any  practicable  mode  of  preventing 
that  result  ? 

Mr.  SPOFFORD.  I  do  not  know  that  there  would  be. 

The  CHAIRMAN.  And  might  not  the  entire  ownership,  by  some  little 
evasion  of  the  laws,  be  on  the  other  side,  just  as  the  entire  ownership 
of  some  vessels  under  the  English  flag  is  here*? 

Mr.  SPOFFORD.  Yes,  sir.  I  presume  there  would  be  methods  of  evad 
ing  the  laws  and  giving  the  benefit  of  the  coastwise  trade  to  foreigners. 

Mr.  HOLMAN.  There  is  nothing  now  to  prevent  a  foreigner  being  the 
actual  owner  of  an  American  vessel  engaged  in  the  foreign  trade? 

Mr.  SPOFFORD.  No,  sir.  There  is  that  disadvantage  at  present.  If  I 
purchase  a  British  ship  and  wish  to  employ  her  in  the  English  coasting 
trade,  it  is  my  impression  that  I  must  get  a  registry  in  the  name  of  an 
Englishman.  The  English  grant  registers  only  to  citizens.  That  is 
what  I  am  in  favor  of.  We  should  grant  to  our  citizens  a  registry  which 
would  enable  them  to  purchase  their  ships  wherever  they  pleased,  and  to 
engage  in  our  coasting  trade  or  in  any  other  trade;  and  if  foreigners  reap 
any  side  advantage,  or  if  in  benefiting  our  own  citizens  we  also  benefit 
foreigners,  I  do  not  think  that  the  small  advantage  which  we  thus  con 
fer  on  them  would  counterbalance  the  great  advantage  which  we  would 
be  conferring  on  our  own  citizens.  I  am  speaking  now  with  reference 
to  the  general  advantage  to  the  commerce  of  the  country.  I  do  not 
suppose  that,  so  far  as  the  mere  ship-building  interests  are  concerned,  a 
measure  of  that  kind  would  be  particularly  beneficial  to  them.  But  if, 
in  addition  to  that  measure,  ship-building  materials  were  relieved  from 
duty,  I  think  that  there  is  that  preference  for  American-built  ships,  and 
that  there  is  that  skill  and  industry  in  this  country,  to  enable  our  ship 
builders  to  compete  favorably,  and  that  they  would  eventually  carry 
the  day. 

The  CHAIRMAN.  Do  you  believe  that  if  the  duty  on  ship-building 
materials  were  taken  off,  the  demands  of  American  ship-owners  for  ships 
could  be  supplied  by  our  ship-builders  at  as  low  a  cost  as  they  could  be 
got  by  purchasing  them  abroad  $ 


NAVIGATION   INTERESTS.  67 

Mr.  SPOFFORD.  I  think  that  it  would  require  some  little  time  to  get 
things  organized.  Our  commerce  has  received  too  severe  a  blow,  not 
only  by  direct  but  by  indirect  causes.  Take,  for  instance,  the  case  of 
the  Collins  and  Cuuard  lines  of  steamers.  The  Cunard  line  has  been  in 
the  receipt  of  a  very  heavy  subsidy,  while  the  subsidy  to  the  Collins  line 
was  discontinued.  We  find  that  the  English  government  is  paying  sub 
sidies  for  its  mail  service  all  over  the  world.  Of  course  that  gives  the 
recipient  of  such  subsidy  a  very  great  advantage.  I  do  not  say  that  it 
is  an  insuperable  advantage.  I  think  that  talent  and  attention  to 
business  will  sometimes  overcome  this  advantage.  But,  all  other 
things  being  equal,  it  certainly  gives  a  very  great  advantage.  Gov 
ernment  subsidy  has  been  the  English  idea  for  many  years,  and  it 
seems  as  if  it  was  now  being  followed  up  by  the  French.  The  French 
and  English  are  building  up  a  magnificent  marine,  and  ours  is  all 
going  to  decay.  Within  a  comparatively  few  years  the  business  of 
ocean  commerce  has  been  much  changed.  Steamships  have  taken 
the  place  of  sailing-vessels.  That  alone  is  one  cause  of  the  decay  of 
the  business  of  building  sailing-ships.  Take  our  own  case.  A  few 
years  ago  we  had  a  line  of  packets  from  New  York  to  Liverpool,  com 
prising  five  or  six  of  the  largest  ships  sailing  out  of  port.  We  could 
not  run  those  packets  now  in  opposition  to  the  steamers.  We  have  been 
obliged  to  send  them  to  the  Pacific.  It  is  not  because  they  are  under  the 
American  flag  as  much  as  it  is  because  we  come  right  into  competition 
with  steamers  which,  on  these  short  voyages,  can  carry  their  freight  at 
a  less  rate.  The  English  steam  marine  has  been  built  up  by  subsidies 
in  the  mail  service,  and  by  the  efforts  which  have  been  made  in  every 
way  to  develop  that  interest. 

Mr.  CALKIN.  You  now  own  steam-vessels  f 

Mr.  SPOFFORD.  Yes. 

Mr.  CALKIN.  I  believe  that  it  is  a  fact,  conceded  by  the  merchants  of 
New  York,  that  the  Collins  line  was  extravagantly  and  badly  managed. 
Do  you  not  think  that  the  merchants  of  New  York  have  learned  very 
much,  in  running  steamship  lines,  to  economize  and  run  them  cheaper? 

Mr.  SPOFFORD.  I  think  they  have. 

Mr.  CALKIN.  They  can  manage  them  more  economically  now  than  they 
could  when  they  first  got  into  the  business,  so  that,  with  a  little  help, 
they  would  be  able  to  compete  with  foreigners  better  than  they  could 
ten  or  twelve  years  ago  ? 

Mr.  SPOFFORD.  It  may  be  a  little  egotistical  in  me  to  make  the  remark 
that  my  father,  the  senior  of  the  firm,  was  engaged  in  the  first  ocean 
steamboat  line  in  this  country,  and  we  have  thus  far,  until  within  a  few 
years  past,  found  our  steamship  interest  profitable.  We  have  continued 
the  business  steadily  up  to  the  present  time. 

Mr.  CALKIN.  Then  I  understand  your  answer  to  be  that  they  do  man 
age  the  business  with  more  economy  than  formerly,  and  are,  of  course, 
getting  more  knowledge  of  the  business  I 

Mr.  SPOFFORD.  Yes,  sir;  so  that  with  some  subsidy  we  should  be  able 
to  compete  with  foreigners. 

Mr.  HOLMAN.  Your  theory  is  that  three  measures  are  necessary  to 
give  new  impetus  to  American  commerce:  first,  the  drawback  on  mate 
rials  entering  into  the  construction  of  ships  to  the  extent  of  the  duty, 
external  and  internal;  second,  free  trade  in  ships;  and  third,  subsidies 
from  the  government  to  encourage  American  lines  in  competition  with 
foreign  lines  ? 

Mr.  SPOFFORD.  Yes,  sir;  these  three  measures  I  am  in  favor  of. 

Mr.  HOLMAN.  As  to  the  coastwise  trade,  you  think  that  whatever 


68  NAVIGATION   INTERESTS. 

vessel  sails  under  the  American  flag,  without  reference  to  the  nationality 
of  its  birth,  should  be  at  liberty  to  participate  in  that  trade  ? 

Mr.  SPOFFORD.  Yes. 

The  CHAIRMAN.  If  the  policy  of  admitting  foreign  ships  to  American 
registry  were  adopted  at  once,  do  you  not  think  that  the  tendency  would 
be  to  have  our  navigation  interests  owned,  in  a  few  years,  very  largely 
by  foreigners,  and  that,  after  a  short  time,  our  commerce  would  not  be 
essentially  a  foreign  interest  ? 

Mr.  SPOFFORD.  I  am  hardly  prepared  to  give  an  opinion  on  that  sub 
ject.  So  long  as  we  keep  the  control  of  it  under  our  flag,  I  do  not  know 
that  there  would  be  any  more  disadvantage  in  that  than  in  allowing  for 
eigners  to  own  large  interests  in  our  railroads. 

Mr.  HOLMAN.  Would  they  own  in  our  shipping  to  the  same  extent? 

Mr.  SPOFFORD.  I  think  not.  Of  course  foreigners  cannot  be  directly 
interested  in  our  shipping,  on  account  of  the  oath  required  of  the  Ameri 
can  ship-owner,  but  they  might  be  indirectly  interested. 

The  CHAIRMAN.  Is  not  the  tendency  to  have  ships  owned  and  con 
trolled  where  they  are  built  ? 

Mr.  SPOFFORD.  I  am  hardly  prepared  to  give  an  opinion  on  that  sub 
ject.  My  impression  is  that  the  mere  building  of  the  ship  does  not  give 
the  control.  I  do  not  know  that  the  people  of  Maine,  a  large  ship-build 
ing  State,  control  vessels  as  much  as  the  citizens  of  New  York  do. 

Mr.  HOLMAN.  Is  it  not  a  fact  that  foreign  capital  is  to  some  extent, 
interested  in  American  shipping  now,  not  only  in  ownership  but  in  run 
ning  vessels  ? 

Mr.  SPOFFORD.  That  is  my  impression.  I  know  cases  were  it  has 
been  so  in  former  years.  I  am  not  prepared  to  say  that  that  is  any  great 
disadvantage.  If  we  wish  capital  for  the  prosecution  of  other  public 
works,  so  long  as  we  retain  the  management  of  it,  I  do  not  know  that  it 
is  any  great  disadvantage  for  us  to  have  it. 

Mr.  WILLIAM  WHITLOCK  made  some  remarks  to  the  committee  on  the 
change  that  has  taken  place  in  substituting  steamers  for  sailing  vessels. 
He  said  that  to  a  large  extent  the  coastwise  trade  was  done  by  steam 
ers.  The  lines  of  packets  between  New  York  and  the  Gulf  were  now 
almost  unknown.  So  with  the  Liverpool  packets.  Steamers  were  su 
perseding  them.  He  held  that  the  application  of  all  laws  should  be 
made  universal.  If  the  navigation  laws  were  repealed  it  would  be  for 
the  benefit  of  a  class,  thus  introducing  a  species  of  class  legislation  in 
order  that  the  capitalist  might  invest  his  money  to  the  best  advan 
tage.  He  had  no  objection  to  that,  but  the  principle  should  be  carried 
out  to  its  logical  conclusions.  He  believed,  however,  that  if  the  restric 
tions  which  now  interfere  with  the  building  of  ships  here  were  removed, 
capitalists  could  invest  their  money  in  ships  here  as  well  as  they  could 
abroad.  He  was  in  favor  of  the  latter  solution  of  the  difficulty,  but  was 
not  in  favor  of  the  former,  He  had  been  a  ship-owner  and  had  been 
more  or  less  intimately  connected  with  ships  for  some  years.  He  thought 
that  all  Avho  were  engaged  in  commerce,  and  who  wanted  to  be  able  to 
carry  freight  at  the  minimum  price,  would  undoubtedly  favor  for  the 
time  being  the  abrogation  of  the  navigation  laws,  but  he  believed  that 
the  true  American  policy  was  to  continue  to  foster  every  interest  which 
would  enable  ships  to  be  built  in  the  United  States  rather  than  have 
them  purchased  abroad.  He  did  not  see  what  harm  could  be  done  (but 
rather  benefit)  by  the  invest ment  of  foreign  capital  in  American  shipping 
interests. 

Mr.  NESMITH,  ship-owner,  remarked  that  they  had  been  very  much 
puzzled  by  the  question,  What  ought  to  be  done  to  restore  American 
commerce — whether  that  could  be  best  accomplished  by  allowing  draw- 


NAVIGATION   INTERESTS.  69 

backs  to  ship-builders,  or  by  allowing  ship-owners  to  buy  their  vessels 
where  they  could  buy  them  cheapest?  They  had  thought  that  the 
idea  of  allowing  drawback  could  not  possibly  be  carried  through,  and 
they  had  therefore  about  made  up  their  minds  that  free  trade  in  ships 
was  the  only  course  that  could  give  the  country  a  commercial  posi 
tion.  In  order  to  show  the  condition  of  things — in  the  East  Indies, 
for  example — he  had  brouglft  with  him,  and  he  submitted  to  the  com 
mittee,  the  last  Calcutta  Freight  Eeport,  which  showed  that  out  of  101 
ships  in  port  only  6  were  American,  and  that  three-fourths  of  them 
were  iron  ships.  He  also  submitted  the  specifications  for  an  iron  sailing 
ship  of  1,030  tons,  with  a  proposal  from  a  Glasgow  firm  to  build  such  a 
ship,  with  outfit  and  all  ready  for  sea,  at  £14  10s.  sterling  per  ton. 
They  had  had  such  ships  offered,  ready  for  sea,  with  double  outfit,  as 
low  as  £12  sterling  per  ton. 

The  CHAIRMAN.  If  the  American  ship-builder  could  obtain  his  mate 
rials,  whether  for  an  iron  or  a  wooden  ship,  free  of  duty,  could  he,  in 
your  opinion,  build  his  ships  to  compete  with  foreign  ship-builders,  and 
supply  the  demand  as  fast  as  ships  are  required  here  ? 

Mr.  NESMITH.  I  should  think  so ;  but  I  do  not  think  that,  whatever 
you  do — whether  you  open  the  door  to  free  trade  in  ships  or  allow  a 
drawback  on  ship-building  materials — you  can  increase  our  commerce 
largely  at  present. 

The  CHAIRMAN.  You  think,  however,  that  whatever  ships  are  required 
to  supply  the  demands  of  American  ship-owners  can  be  supplied  by 
American  ship-builders  as  cheaply  as  by  English  ship-builders,  if  they 
have  the  materials  free  of  duty  ? 

Mr.  NESMITH.  As  to  wooden  ships  I  should  say  that  there  is  no  ques 
tion  but  that  they  can  do  better;  but  as  to  iron  ships  I  am  not  so  well 
satisfied.  In  the  first  place,  we  must  be  able  to  get  our  material  as  cheap, 
which  we  cannot  do,  even  with  the  drawback.  I  think,  however,  that 
if  the  American  ship-builders  were  placed  on  the  same  footing  with  regard 
to  materials  as  the  English  ship-builders  are,  they  could  furnish  ships, 
whether  of  iron  or  wood,  as  fast  as  they  are  required,  and  better  ships, 
too. 

The  CHAIRMAN.  You  then  do  not  believe  it  necessary  to  buy  our  ships 
abroad  for  the  purpose  of  supplying  the  demand — providing  the  other 
measure  can  be  carried  out  ? 

Mr.  NESMITH.  I  should  say  not.  We  are  altogether  Americans,  and 
we  want  American  ships  and  American  everything.  We  do  not  wish 
to  be  compelled  to  step  out  of  the  business  because  we  cannot  have  iron 
ships,  and  prefer  that  something  should  be  done,  either  through  free 
trade  in  ships,  or  in  some  other  way,  to  enable  us  to  procure  and  run 
ships  in  competition  with  other  nations. 

The  following  is  the  specification  referred  to  in  the  statement  of  Mr. 
Nesmith : 

SPECIFICATION  OF  AN  IRON  SAILING  SHIP. 

DIMENSIONS. 

Length  for  tonnage  208  feet. 

Breadth  of  beam,  34  feet  9  inches. 

Depth  of  hold,  21  feet  2  inches. 

Break,  45  feet  by  20  inches. 

Tonnage  register,  about  1,030  tons. 

To  class  A  A  1  at  Lloyds,  and  twenty  years  in  the  Liverpool  underwriters'  book. 

Keel  to  be  of  forged  iron,  8£  by  3  inches,  in  long  lengths,  scarfed  together. 

Stem  of  forged  iron,  8$  by  3  inches,  scarfed  at  least  7  feet  into  the  keel. 


70  NAVIGATION   INTERESTS. 

Stern  post  of  forged  iron,  8£  by  4  inches,  with  solid  forged  gudgeons  on  back  for  rud 
der  braces. 

Center  keelson  to  be  box  form,  16  by  17  inches,  of  -}g-inch  plates,  with  angle  irons  3J 
by  3  by  fa  inches,  riveted  to  double-reverse  bars  on  top  for  floors. 

Frames  of  angle  iron,  5  by  3  by  fa  inches,  spaced  21  inches  to  center,  to  be  in  one 
piece  from  keel  to  gunwale. 

Reverse  frames  of  angle  iron,  3£  by  3  by  fa  inches,  extending  to  gunwale  and  lower 
deck  beams  on  alternate  frames. 

Floor  plates,  on  every  frame,  24  by  \%  inches,  extending  up  to  the  bilges  to  the  4-feet 
water  line. 

Bilge  keelsons,  four  in  number,  of  angle  iron,  5  by  4£  by  fa  inches,  riveted  back  to 
back  and  to  double-reverse  angle  irons,  and  to  be  connected  together  at  ends  by  breast 
hooks. 

Intercostal  keelson  to  be  fitted  on  at  each  side  at  half»floor  for  two-thirds  the  vessel's 
length,  of  ]  g-inch  plates,  connected  to  floor-plates  by  angle  irons  3^  by  3  by  fa  inches, 
and  to  project  above  floor-plates  to  form  a  keelson,  riveted  between  double-angle  irons 
5  by  3£  by  fa  inches,  to  have  iron  wash-plates. 

Main  deck  stringers,  34  by  \%  inches  in  midships,  reduced  at  ends  to  26  inches,  to  be 
fitted  close  to  the  sheer  strake,  and  secured  thereto  by  an  angle  iron  5  by  4£  by  fa 
inches,  with  a  flange  formed  round  the  scuppers.  An  angle  iron  4  by  3  by  fa  inches, 
to  be  riveted  to  the  stringer  plates,  forming  a  gutter  water-way  16  inches  broad.  The 
butts  of  stringer  plate  in  midships  to  be  triple  riveted. 

'Tween  deck  stringers,  25  by  }%  inches,  riveted  to  top  of  beams,  and  connected  to  re 
verse  bars  on  frames  by  an  angle  iron  5  by  4J  by  fa  inches. 

Main  and  'tween  deck  beams,  of  Butterby  iron,  8|  by  fa  inches,  spaced  3£  feet  to  cen 
ters  with  double-angle  irons  3J  by  3£  by  f  inches  riveted  on  top  edge,  secured  to  side 
of  vessel  by  the  ends  of  the  beams  being  turned  down  and  formed  a  knee  of,  which  is 
to  be  riveted  to  the  frames  21  inches  deep ;  hatch  beams  and  fore  and  afters  to  be  94- 
inches  deep. 

Deck  tie  plates,  12^  by  |f  inches,  to  run  fore  and  aft  on  each  side  of  hatchways  on 
main  and  lower  deck  beams.  Diagonal  ties  to  be  fitted,  where  practicable,  on  main 
deck  beams,  and  in  wake  of  masts,  on  'tween  deck  beams. "  Mast  partners  to  take  three 
beams  in  length  with  bulb-iron  combings. 

Bulkhead — One  collision  bulkhead,  to  be  fitted  forward,  of  ^-inch  plates,  riveted  be 
tween  double  frames,  and  stiffened  with  angle  iron  3|  by  3  by  fa  inches,  spaced  30 
inches  apart.  All  stringers  to  be  continued  through  the  bulkhead,  and  collars  fitted 
round  them  to  be  perfectly  water-tight. 

Stanchions  in  lower  hold  3|  inches  diameter,  'tween  decks  3  inches  diameter.  Double 
stanchions'  to  form  iron  ladders  at  main  hatch,  to  have  option  of  hollow  stanchions, 
extra  size. 

Plating— 

Garboard  strakes,  If  inch ;  ^ 

From  garboard  bilge,  }§  inch;  T    h    rpf]1irpri  of  PTUis 

From  bilge  to  three-fifths  depth  of  hold,  U  inch ;  oe  reuucea  at  enat>, 

From  thi-ee-fifths  depth  of  hold  to  sheerstrlkes,  &  inch ;     [     as  aUowed  ^  L1°y ds' 
Sheerstrake,  -ff  inch ;  J 

Butts  of  sheerstrake  and  main  deck  stringers  to  be  triple  riveted  in  midships. 

Bulwarks  to  be  of  iron  fa  inch  in  way  of  break  and  forecastle,  and  fi6  inch  in  body 
of  ship ;  to  be  stayed  with  H-formed  stanchions,  1£  incn-  Top-gallant  bulwarks  to  be 
neatly  paneled  with  teak,  varnished,  and  to  have  cast  lead  ornaments. 

Main  rail,  of  angle  iron,  7-J  by  3^  by  f  inches,  riveted  to  bulwarks  with  angle  iron  on 
inside  edge,  2^  by  2£  by  f  inches,  for  fixing  greenheart  pin  rail,  say  7  by  3£  inches,  or 
teak  rail,  owner's  option,  and  greenheart  pin  rail. 

Top-gallant  rail,  of  teak  7£  by  3|  inches,  fixed  to  an  angle  iron  2£  by  2£  by  fa  inches, 
riveted  to  bulwarks  and  caulked. 

Rudder  stock,  of  forged  iron,  5f  inches  diameter  at  head  and  3  inches  diameter  at 
heel,  with  two  short  stays  forged  to  the  frame,  and  plated  with  ^-inch  plates. 

Riveting— To  be  double  riveted  throughout,  bevel  necked  rivets  to  be  used  on  the 
outside  plating. 

Decks,  of  yellow  pine :  main  deck  5  by  4  inches,  break-deck  4  by  3£  inches,  fastened 
with  galvanized  iron  bolts  and  nuts  let  well  into  the  decks,  and  plugged  with  well- 
seasoned  turned  plugs  dipped  in  white  lead.  Decks  to  be  well  free  from  knots,  and 
have  two  coats  of  raw  oil.  Teak  plank  next  water-way,  8  inches  broad,  and  one  for 
ring  bolts  on  each  side  of  hatches  10  inches  broad ;  cabin  deck  6  by  3  inches. 

Half  deck,  laid  on  'tween  decks,  8  feet  from  side  and  from  after-hatch  to  break  bulk 
head  ;  full  deck  also  from  fore  bulkhead  till  afterpart  of  fore-hatch,  6  by  3  inches. 

Hatches  to  be  in  size  according  to  plan  approved  of  by  owners,  with  iron  combings 
.standing  15  inches  above  the  deck.  The  fore  and  after  hatches  to  have  teak  booby 
hatches  on  top.  Main  hatch  17  by  12  by  6  feet;  lower  hold  21  by  12  by  6  feet,  with 
loose  beams  bolted  with  screw  bolts.  Fore  and  after  hatch  6  by  5  feet. 


NAVIGATION    INTERESTS.  71 

Ceiling,  to  turn  off  bilge,  of  red  pine,  2|  inches  thick ;  the  flat  of  bottom  to  bo  laid  in 
hatches,  with  rings  to  lift ;  the  ceiling  at  bilge  and  ends  where  no  hatches  are  formed 
to  bo  properly  caulked ;  the  side,  from  top  of  bilge  to  main  deck,  to  be  sparred  with 
2i-inch  battens,  spaced  10  inches  apart,  the  battens  to  be  properly  planed  and  beaded 
on  both  edges. 

Sweat  boards — The  gunwale  stringer  to  be  fitted  with  movable  shutter  boards,  to 
carry  off  sweat  from  cargo.  Shutters  to  be  made  of  1-inch  pine  and  fastened  with  bat 
tens. 

Chain  lockers,  of  sufficient  size  to  contain  the  chains,  fitted  according  to  plan  ap 
proved  by  owners,  to  bo  made  of  greenheart. 

Hawse  pipes — Two  on  each  bow,  of  cast  iron,  fitted  in  hard  wood  chocks,  with  iron 
sliding  shutters. 

Timber  heads,  of  cast  iron,  to  answer  for  ventilators,  with  brass  tops  and  elevators ; 
also  all  necessary  mooring  pipes  of  cast  iron. 

Windlass  to  be  fitted  with  a  patent,  say  23  inches  purchase,  with  fluting  whelps  and 
patent  stoppers,  spindle  to  run  through  the  entire  length  of  windlass ;  the  windlass 
bitts  to  he  of  iron  or  greenlieart ;  pall  bitt  of  iron. 

Winches — One  at  main-hatch  with  triple  purchase,  and  one  at  fore-hatch  with  double 
purchase,  and  chain  lifters  ;  one  small,  portable,  for  cargo. 

Capstan — Two  on  main-deck  of  the  large  size,  and  one  smaller  on  forecastle-deck,  to 
have  brass  plates  on  top  and  brass  mountings  round  the  holes  ;  capstan  plates  to  have 
ship's  name  and  port  engraved. 

Store-decks  in  fore  and  after  peaks  as  required  by  owners. 

Galvanizing — All  wrought  and  cast  iron  work  connected  with  the  hull,  on  deck,  to 
be  galvanized. 

Tanks,  two  in  number,  to  contain  4,500  gallons,  placed  where  required  by  owners. 
Bread  tanks,  six  in  number,  to  contain  10  cwt.  each,  placed  where  required;  or  if  re 
quired  by  owner,  one  tank  fitted  in  run  to  hold  20  cwt. 

Pumps,  of  Wilson  &  Formby's  patent,  7  inches  diameter,  with  fly-wheel  motion. 
Bilge  pumps,  5  inches  diameter,  to  work  of  same  spindle  as  main  pumps.  One  small 
pump  to  be  fitted  between  main  pumps,  4  inches.  One  head  pump  to  be  fitted,  and 
one  pump  in  fore-peak.  One  brass  or  copper  pump  for  water  tanks,  with  all  necessary 
pipes,  &c. 

Deck  house  to  be  fitted  between  main  hatches  and  foremast  for  officers,  crew,  and 
boys,  and  galley  store-room,  &c.,  to  be  strongly  built,  and  neatly  finished  outside  with 
teak  pilasters  and  moldings,  and  have  carved  moldings  round  top. 

Forecastle — Fitted  up  in  a  plain  style,  for  the  accommodation  of  crew,  with  store 
rooms,  if  required. 

Cabin — Fitted  in  mahogany  and  maple,  polished,  with  gilt  moldings,  and  trusses 
between  skin  and  ceiling  to  be  filled  with  cork  shavings.  Captain's  room  to  be  fitted 
with  mahogany  bed,  front  drawers,  book  case,  sofa,  &c.  Chief  officer's  room  to  be 
fitted  in  a  comfortable  style  and  painted  oak.  Pantry  to  be  fitted  with  dresser  with 
lead  top  and  brass  basin,  with  all  necessary  racks  and  lockers,  lined  with  zinc.  State 
rooms  to  be  fitted  according  to  plan,  with  wash-hand  b^isin  with  marble  top  in  each 
room.  The  plan  of  the  cabin  to  be  approved  by  owners,  and  all  to  have  first-class 
finish. 

Companions  and  skylight  to  be  of  teak,  varnished.  The  cabin  skylight  to  have 
stained  glass,  and  all  locks  and  hinges  to  be  of  hrass. 

Painting — To  have  three  coats  of  paint,  inside  and  outside,  to  owner's  satisfaction  ; 
the  bottom  inside  to  be  cemented  with  the  best  Portland  cement.  Mclnues's  or  other 
approved  composition  to  be  put  on  the  bottom ;  the  ship  to  be  tested  with  water  before 
cemented. 

Boats,  as  required  by  board  of  trade.  Boats'  beams  to  be  fitted,  also  chocks  for  long- 
boat,  with  swivel  and  a  set  of  davits,  with  gear  complete  on  each  side.  Boats'  beams 
to  be  covered  on  top,  and  paneled  on  sides  with  teak  wood,  to  owner's  approval. 

Masts — Fore  and  main  and  mizzen  masts,  also  bowsprit,  lower  yards,  and  lower  top 
sail  yards,  of  best  iron.  The  other  spars  of  red  and  pitch  pine,  owner's  option.  The 
smaller  spars  of  spruce.  The  dimensions  of  masts  and  spars  to  be  mutually  agreed 
on,  and  masting  plans  to  be  approved  by  owners.  All  the  spare  to  bo  of  first-class 
quality. 

Rigging— Standing  rigging  of  best  charcoal  iron  wire  rope,  4£  inches  circumfer 
ence,  to  be  parceled  and  served  over  with  small  strings,  the  rest  in  proportion.  The 
running  rigging  of  European  or  best  St.  Petersburg  clean  hemp,  to  be  fitted  with  a 
complete  suit  of  ropes  and  blocks,  brace  halyards,  and  principal  blocks  to  be  patent 
roller  bushes  and  steel  pins.  Blocks  and  bushes  to  be  to  owner's  satisfaction.  Dead 
eyes  of  lignumvitai  10  inches,  brass  caps  for  end  of  stays.  In  addition  to  tho  above, 
the  vessel  to  be  supplied  with  spare  gear,  as  hereafter  mentioned.  Jibstays  to  be  fitted 
in  wake  of  booms  with  chain. 

Anchors  and  chains  according  to  Lloyds'  and  underwriters'  rules,  and  admiralty  test. 
Anchors  to  bo  of  Rodgers's  patent.  An  anchor  davit  to  be  fitted  on  forecastle  deck ; 


72  NAVIGATION   INTERESTS. 

90  fathoms  of  1-inch  mooring  chain  to  be  supplied,  together  with  all  necessary  small 
chain  for  rigging ;  one  box  chain  punches  to  be  supplied. 

Generally — The  whole  to  be  of  best  workmanship  and  materials,  as  required  for  an 
A  A  1  iron  ship  by  Lloyds,  and  for  the  twenty  years7  class  in  red,  in  Liverpool  under 
writers'  book. 


GENERAL  OUTFIT. 

WARPS,  ETC. 


1  towline,  11  inches,  90  fathoms. 
1  warp,  8  inches,  90  fathoms. 
1  warp,  7  inches,  90  fathoms. 
1  warp,  5-£  inches,  90  fathoms. 


BOATS,  ETC. 


1  long  boat,  26  by  8  by  3  feet  8  inches,  bottom  coppered,  and  round  stern,  >  „       , 

1  skiff,  24  by  5  feet  9  inches  by  2  feet  9  inches,  5  Carrel. 

1  gig,  24  by  5  feet  9  inches  by  2  feet  4  inches,         ?  r,      , 

1  dingy,  18  by  5  feet  6  inches  by  2  feet  3  inches,      $  Ule 

Rowlocks  brass  for  gig  and  dingy.  Brass  yoke  do.,  and  with  rudders  for  each  boat. 
Boats  to  be  of  larch,  and  thoroughly  copper-fastened.  Necessary  back  boards, 
gratings  for  boats,  &c.  Long  boat  to  have  cover  over  top,  with  teak- wood  top- 
sides,  and  fitted  under  on  deck  for  live  stock.  Iron  rowlocks  for  long  boat  and 
skiff. 

SAILS. 

1  flying  jib. 

1  standing  jib. 

2  small  jibs. 

2  foretopmast  stay-sails. 

1  fore  stay-sail. 

2  fore-sails. 

2  sets  foretop  sails. 
2  foretop-gallant  sails. 

1  fore  royal  sail. 

2  mainsails. 

2  sets  maintop  sails. 

2  main  top-gallant  sails. 

1  main  royal  sail, 

1  main  stay-sail. 

1  top-gallant  stay-sail. 

1  main  topmast  sail. 

1  royal  stay-sail. 

1  main  spencer. 

2  mizzens. 

1  cross  jack. 

2  sets  mizzen  top-sails. 

1  set  mizzen  top-gallant  sails. 

1  set  mizzen  royals. 

1  mizzen  stay-sail. 

1  mizzen  top-mast  stay-sail. 

1  mizzen  top-gallant  stay-sail. 

3  topmast  studding-sails. 

2  lower  studding-sails. 

3  top-gallant  studding-sails. 
2  royal  studding-sails. 

2  wind-sails. 

1  set  awnings  to  mainmast  and  foremast,  with  stanchions  and  ridge  chain  complete ; 
also,  forecastle  awnings,  with  same. 

6  bolts  canvas,  Nos.  1,  2,  3,  4,  5,  and  6. 
24  pounds  seaming  twine. 
18  pounds  roping  twine. 

1  set  boat  sails  and  spars  for  long  boat  and  skiff.    (Owners  .to  >be  iallowed  .to  make 

sails  at  Is.  Wd.  per  yard,  dropping  \d.  each  number.) 

2  sets  fids. 

6  palms,  assorted. 
6  dozen  sail  needles. 


NAVIGATION   INTERESTS.  73 

6  sail  hooks. 
2  iron  rubbers. 
Canvas  covers  for  skiff,  gig,  and  dingy. 

CARPENTER'S  AND  BOATSWAIN'S  STORES. 

1  hand  copper  pump. 

4  pump  spears. 

4  lower  boxes. 

1  break  and  weegee  and  wheel  motion. 

1  pair  rigging  screws. 

2  sounding-rods. 

1  spare  top-gallant  mast  or  yard. 

1  spare  top-mast  or  lower  yard  of  red  pLu?. 

1  spare  jib-boom  or  topsail  yard  of  red  or  pitch  pine. 

4  spare  Norway  spars. 

1  full  set  studding-sails,  booms,  and  yards,  with  blocks  and  gear  complete. 
1  side  accommodation  ladder,  fitted  and  mounted  complete,  of  teak  wood. 
1  Jacob's  ladder,  complete. 

hold  ladder. 
.  half-deck  ladder. 

forecastle  ladder. 

store-room  ladder. 

larzarette  ladder. 

1  set  hatch  bars  with  brass  padlock^ 

2  sets  tarpaulines. 
6  handspikes. 

2  sets  tarpaulines  for  small  cargo  hatches. 

2  log  chips.    Full  set  capstan  bars,  fitted  in  rack  where  required. 
1  pitch  pot  and  ladle. 

1  booby  hatch  for  half-deck  and  fore  hatch,  teak  wood. 
30  gallons  lamp  oil. 

35  gallons  raw  oil. 

3  gallons  turpentine. 

5  gallons  olive  oil. 

10  oil  tanks,  10  gallons  each. 

2  five-gallon  tanks.    All  to  be  fitted  where  required. 
1  bladder  patty. 

1  leaf  hog's  lard. 

1  brass  bell  and  stand  with  ship's  name  and  port  on. 

1  small  brass  bell  for  quarter-deck,  with  stanchions  complete  and  ship's  name  and 

port  on. 
Mahogany  wheel  and  teak-wood  cover,  and  ship's  name  carved  and  gilded  on  each 

side  of  cover,  and  bound  with  brass,  and  ship's  name  engraved. 
Screw  steering  apparatus,  with  spare  tiller  and  blocks  and  chain,  to  owner's  ap 
proval. 

3  forecastle  lamps. 
1  cook's  lantern. 

1  shark  hook. 

1  portable  filter. 

1  medicine  chest,  with  ship's  name  on  brass  plate,  mahogany  or  teak,  fitted  com 
plete  for  India  or  China  voyage,  say  30  inches  by  17  inches. 

1  ensign. 

1  union  jack. 

1  burgee. 
Ship's  name. 

1  house  flag. 

1  set  signals  and  halyards  and  book,  Maryatt's,  and  commercial  code  complete,  in 
addition  to  full  set  of  gear. 

1  coil  If-inch  rope,  120  fathoms. 

1  coil  2  j-inch  rope,  120  fathoms. 

1  coil  3-inch  rope,  120  fathoms. 

1  coil  31-inch  rope,  120  fathoms. 

1  coil  3f-inch  rope,  120  fathoms. 

1  coil  18  thread. 

1  coil  lanyard  rope,  5-inch. 

1  coil  2  yarn-spun  yarn. 

4  skeins  amberline,  > 

4  coils  marline,         Vsay  2  hundred-weight. 
4  coils  house  line,     ) 


74  NAVIGATION   INTERESTS. 

2  buoys  and  ropes. 
2  patent  life  buoys. 

1  spare  shackle  for  each  anchor. 

2  dozen  assorted  forelocks. 
2  dozen  washers  for  bolts. 

Fids  for  masts,  iron. 
1  hundred-weight  nails,  assorted. 
1  axe. 
1  adze. 
1  saw. 
1  maU. 
1  hammer. 

4  cork  fenders,  large  size,  to  be  worked  over  with  hemp  ropes  by  hitching. 
1  set  boat's  chocks,  complete. 

1  pig-house,  with  iron  bars. 

2  dozen  assorted  connecting  shackles. 
2  dozen  small  shackles. 

Iron  check  blocks  on  lower  yards  for  top-sail  sheets. 

Iron  hoops  on  lower  yard  for  jack-stays,  and  quarter  hoops  for  top-sail  sheets,  with 
rollers  for  studding-sail  booms. 

1  portable  forge. 

2  hundred-weight  rivets,  assorted. 
1  set  riveting  jacks. 

1  ratchet. 

Set  of  drills  from  -J  inch  to  1  inch,  with  knee. 
4  chisels. 
1  screw  wrench,  with  patent  spanner. 

1  chain-purchase  sling. 

2  pairs  skeets  for  ship's  side,  with  covers  for  the  rail  in  way  of  fore  and  main 

hatches. 

60  feet  hard  wood,  12  by  3. 
8  scrapers. 

400  feet  red  fir  planks. 
4  spare  ash  oars. 
4  iron  crowbars. 

2  dozen  hooks  and  thimbles,  assorted. 
2  dozen  clip  hooks. 

4  large  ventilators,  to  be  properly  placed. 
6  deck  scrubbing  brushes,  with  weegee. 

1  register  box  and  locks,  with  ship's  name. 
8  paint  scrubbing  brushes. 

2  whitewash  brushes. 

18  paint  brushes,  assorted. 

4  pencil  brushes. 
48  birch  brooms. 

4  joiner's  scrapers. 

2  plumber's  scrapers. 

2  cabin  sweeping  brushes,  long  and  short. 
12  hundred-weight  paint,  assorted. 

1  cask  M'Innes's  paint,  or  tallow,  say  3  hundred-weight. 
40  gallons  paint  oil. 

1  transparent  compass,  fitted  on  tripod,  or  some  other  suitable  place. 

1  azimuth  compass. 

1  steering  compass,  fitted  complete  in  brass  dolphin  binnacle,  all  properly  adjusted. 
Compass  fitted  with  10-inch  card  and  storm  gimble  center,  owner's  approval. 

1  cabin  compass,  transparent. 

2  spare  compass  cards  marked  with  degrees, 
thermometer. 

sympiesometer,   $   C 

pair  glasses. 

telescope,  to  be  approved  of.   : 

log  glasses. 

patent  log  and  line. 

1  half-hour  glass. 

2  mops  and  handles. 
1  log  slate. 

1  log  book. 

1  log  reel  and  line. 

1  patent  deep-sea  lead  line  and  reel,  200  fathoms. 


NAVIGATION   INTERESTS.  75 

1  patent  sounding  machine. 

2  band  leads  and  lines. 
1  harpoon. 

1  pair  grains. 

1  side  pump  leather. 

1  side  service  leather. 
Brass  signal  lamps,  to  be  fitted  up  per  board  of  trade  requirement,  say  4. 

1  flash  light. 
12  fishing  hooks. 

1  box  blue  lights. 

1  box  rockets. 

3  fishing  lines. 

2  spare  log  lines. 

1  brass  speaking  trumpet. 
1  fog  horn. 

Gratings  between  skylight  and  wheel ;  also,  between  cabin  doors  and  skylight,  with 
gratings  front  of  poop,  and  gutter  waterway  on  poop,  all  of  teak  wood. 

1  grindstone  and  trough. 

4  long  tar  brushes. 

2  short  tar  brushes. 

1  set  ash  oars  to  each  boat. 
-J  cask  pitch. 
i  cask  rosin. 

1  cask  Stockholm  tar. 

2  hundred-weight  oakum. 
18  chain  hooks. 

7  luff-tackle  blocks,  say  13  inches  double. 
7  luff-tackle  blocks,  say  13  inches  single. 
18  spare  blocks. 
2  spare  dead-eyes  and  pins. 
2  spare  cargo  pennants,  with  blocks  and  fall. 
2  chain  stoppers. 
2  shank-painters. 
2  chain  claws. 

1  spun-yarn  winch,  iron. 

2  double  21 -inch  purchase  blocks. 

1  triple  21-inch  purchase  block. 

2  cat-blocks. 

2  top  blocks,  say  5  and  6  each  rope. 

3  snatch-blocks. 

1  purchase  gin  and  chain. 
1  gaff  fitted  to  mainmast. 
1  ballast  gin  and  chain. 

1  anchor  nshho^Jf. 

2  boat-hooks. 

2  watch  tackles. 

12  marline  spikes,  flat  pointed. 
6  serving  mallets. 

3  serving  boards. 

2  pair  chain  can-hooks. 
2  pair  chain  nippers. 
1  pair  chains  for  puncheons. 
1  pair  chain-purchase  slings. 
9  ballast  shovels. 
9  coal  shovels. 
16  feet  hen-coops,  teak. 
1  fire-engine  and  hose,  with  teak  cover. 


COOPER'S  STORES. 


4  water  casks,  100  gallons. 

2  breakers,  20  gallons  each. 

2  oval  harness  casks. 
12  deck  buckets. 

1  water  can. 

1  wash  deck  tub. 
12  mess  kids. 

1  water  funnel. 

2  draw  buckets. 
4  bread  boxes. 


76  NAVIGATION   INTERESTS. 

1  cask  for  flour. 

3  vinegar  casks,  20  gallons  each. 

2  lime  casks,  20  gallons  each. 
1  molasses  cask,  15  gallons. 

All  casks  and  12  buckets  to  have  galvanized  iron  hoops ;  also,  12  buckets  and  2  har 
ness  casks  which  are  to  have  brass  hoops,  and  to  be  of  teak. 

CABIN  STORES. 

1  iron  tea-kettle. 

1  copper  tea-kettle. 

1  britannia  metal  tea-pot. 

1  britannia  metal  coffee-pot. 
12  table-spoons,  E.  P.  No.  1. 
12  tea-spoons,  E.  P.  No.  1. 

1  dozen  table  knives  and  forks,  with  white  ivory  handles. 

1  dozen  table  forks,  E.  P.  No.  1. 

1  dozen  dessert  knives  and  forks,  with  white  ivory  handles. 

1  dozen  forks,  E.  P.  No.  1. 

1  basket  for  electro-plates. 

1  metal  tureen  and  ladle. 

1  electro-plate  tureen  and  ladle,  No.  1. 
12  electro-plate  dessert  spoons,  No.  1. 

1  electro-plate  inustard-pot  spoon,  No.  1. 

2  electro-plate  salt  spoons,  No.  1. 

6  common  knives  and  forks,  with  6  table  and  6  tea-spoons,  britannia  metal. 
1  carving  knife  and  fork. 
1  steel,  ivory  handle. 
1  set  castors,  E.  P.  No.  1. 

4  dish  covers,  E.  P.  No.  1. 
1  blackjack. 

4  brass  candlesticks. 
4  pair  snuffers  and  tray. 
4  dozen  plates,  assorted. 
1  dozen  dishes. 
6  vegetable  dishes. 

1  dozen  mugs. 

2  butter  boats. 
2  butter  pots. 

1  dozen  egg-cups. 

2  glass  salts. 

2  sugar  basins,  (1  glass.) 
Crockeryware  to  have  ship's  name  on. 
\  dozen  basins.  ^ 

1  wash-hand  basin  and  jug  to  be  fitted  up  in  each  state-room. 

2  water  jugs  for  cabin. 

2  dozen  cups  and  saucers. 

4  decanters. 

1  dozen  tumblers. 

1  dozen  wine  glasses. 

1  dozen  champagne  glasses. 

2  brass  cocks. 

4  chamber  pots. 

1  pair  flour  scales  and  weights. 

1  pair  steel-yards. 

1  set  weights  and  scales  complete. 

2  coffee  mills. 
1  candle  box. 
1  spice  box. 

1  flour  dredger. 

1  set  pewter  measures,  Bay  6 

1  plate  basket. 

corkscrew. 

dust  pan. 

hand  bell. 

fancy  bread  baskets. 

cabin  lamp,  to  be  approved. 

brass  bar,  to  be  fitted  in  skylight,  with  swing  tray  attached 

berth  lamp  to  each  state-room  and  pantry. 
Damask  curtains  in  each  room. 
1  cabin  stove,  with  copper  funnel  complete. 


NAVIGATION   INTERESTS.  77 

Iron  funnel  inside  of  copper,  to  bq  approved. 

1  coal  box,  japanned. 

1  set  fire-irons. 

1  chair  for  end  of  table. 

1  stool  for  each  room. 

1  forecastle  stove  and  funnel. 

1  teak  or  mahogany  table,  to  draw  out. 

1  stove  for  house  on  deck,  and  funnel. 
Settees  on  each  side  of  cabin  table,  with  swinging  backs. 
All  hair-cloth  to  be  covered  with  hollands  and  bound  with  red. 
Sideboard  to  bo  fitted  in  cabin  of  Spanish  mahogany  and  marble  top  and  brass  rail. 
Sofa,  drawers,  and  book-case  of  teak  in  captain's  room,  with  small  table  for  chronom 
eter. 

Settees  and  after-lockers  to  bo  covered  with  best  hair-cloth. 
All  hiuges  or  locks  in  cabin  or  elsewhere  to  bo  brass. 
Furniture  for  locks,  to  be  glass,  owner's  approval. 

1  cloth  for  cabin  table. 

1  oilcloth  for  cabin  table. 

1  carpet  for  cabin  floor,  and  oilcloth  for  each  state-room  and  pantry,  with  runners. 
Carpet  for  captain's  room,  with  oilcloth  and  all  necessary  table-cloths  and  towels  for 
the  voyage. 

1  side  light  in  each  room,  and  all  to  be  approved  by  owners. 

Steward's  pantry  and  lazarette  to  be  properly  fitted  up,  with  all  necessary  pease  and 
other  lockers,  lined  with  zinc  throughout. 

1  water-closet  and  bath  to  be  fitted  in  cabin,  to  have  double-action  valves,  and  1  in 

wing  of  monkey,  forecastle. 
Cabin  stairs  to  be  leaded,  and  to  have  brass  diamond  step  plates,  fitted  with  brass 

rods  from  deck  to  cabin. 
All  small  ladders  on  deck  to  have  diamond  brass  plates. 

1  looking-glass  over  sideboard,  and  one  in  each  room,  to  owner's  approval. 

1  time-piece  to  match  mirror. 

2  guns  complete,  with  carriages  of  teak,  say  4-pouuders. 

24  rounds  cartridges,  ammunition,  24  shots  for  the  voyage,  with  copper  magazines. 

6  muskets. 

6  pistols. 

6  bayonets. 

6  cutlasses. 

6  hand-cuffs. 
Ship  to  have  female  figurehead. 


The  poop  skylight  companion  grating  over  wheel. 
12  buckets  and  harness  casks  and  fore 


forecastle  scuttle  to  be  of  teaK. 
All  cooking  utensils  to  be  supplied,  with  caboose  of  first-rate  quality  for  East  India 
voyages,  to  owner's  approval. 

COOKING  EANGE,  (to  be  sufficiently  large  to  cook  for  24  hands. 

2  copper  boilers  and  steamer. 

3  lined  oval  pots. 

4  saucepans. 
1  fish  pan. 

1  cullender. 

2  frying  pans. 
1  cooRs  ladle. 

1  basting  spoon, 
1  cook's  knife. 
1  cook's  axe. 
1  saw. 
1  cleaver. 
1  steel. 
1  tormentor. 
1  mincing  knife. 

1  bread  grater. 

2  pudding  pans. 

3  bread  tins. 

3  pudding  molds. 
2  roasting  pans. 

2  gridirons. 

1  pepper  box. 
1  slice. 
6  skewers. 

3  baking  dishes,  enameled. 


78  NAVIGATION   INTERESTS. 

It  is  understood  that  anything  enumerated  twice  is  only  to  be  singly  supplied.  No 
extras  to  be  supplied  without  the  same  be  given  111  writing  to  any  party  appointed  by 
the  owners,  and  having  their  approval  by  signing  the  notice,  a  copy  of  which  is  to  be 
sent  to 

Anything  left  out  of  this  specification  which  it  is  customary  to  supply  to  this  class  oi 
vessel,  it  is  understood  that  the  same  will  be  supplied  by  the  builders.  And  anything 
left  out  of  this  specification  must  be  supplied  in  this  case  in  accordance  with  contract, 
and  everything  to  be  carried  up  to  Lloyds'  and  underwriters'  rules. 

Everything  of  first-class  material  and  of  the  best  workmanship.  Delivery  at  the 
Broomielaw,  Glasgow,  after  being  in  graving  dock,  on  the  ,  or  before,  if 

practicable. 

Model  to  be  approved  of  before  laying  the  vessel  down,  and  finished  model  sent  to 
purchasers  during  the  building. 

Builders'  present  price,  as  per  specification,  £14  10s.  per  register  ton. 

Mr.  WILLIAM  H.  WEBB  suggested  that  the  committee  should,  before 
adjournment,  request  the  ship-owners  of  Kew  York,  and  the  under 
writers,  to  communicate  their  views  in  writing  on  the  question  before 
the  committee.  He  himself  would  be  prepared  to  do  so,  and  could  give 
more  information  in  that  way  than  he  could  orally. 

The  CHAIRMAN  stated  that  the  committee  intended  to  address  circu 
lars  to  gentlemen  interested  in  the  various  branches  of  the  business,  and 
to  get  all  the  information  that  it  could,  in  writing  as  well  as  orally.  The 
committee  would  be  very  glad  to  have  Mr.  Webb  communicate  his  views 
in  writing. 

Mr.  WEBB  said  he  should  be  very  glad  to  do  so. 

The  following  was  received,  and  ordered  on  file : 

MR.  CHAIRMAN  AND  GENTLEMEN  OF  THE  CONGRESSIONAL  COMMITTEE  :  I  have  here 
tofore  been  quite  a  vessel  owner  and  builder,  but  not  so  now,  and  therefore  cannot  com 
plain  much ;  but  I  feel  proud  to  think  that  there  has  been  enough  evidence  before  your 
honorable  body  by  the  merchants  and  ship-builders  of  the  United  States  to  convince 
you  that  the  taxes  and  tariffs  on  ships  and  ship-building  materials  ought  to  entirely 
cease,  for  the  protection  of  commerce.  But  there  is  another  branch  of  taxes  which  I 
wish  to  call  your  serious  attention  to.  I  have  been  for  the  last  three  years  contesting 
the  illegality  of  State  and  municipal  taxes  on  the  commerce  of  the  United  States. 
Those  sort  of  taxes  on  vessel  property  are  enormous,  and  attended  with  obstructions, 
delays,  and  damage.  I  hope,  Mr.  Chairman,  you  and  your  committee  will  not  be  un 
mindful  in  assisting  us  in  pressing  our  claims  at  the  next  session  of  Congress  to  abrogate 
and  finally  break  up  the  different  and  various  State  and  municipal  taxes  that  are  im 
posed  upon  and  exacted  from  commerce  at  the  various  ports  in  the  United  States,  as 
partially  set  forth  in  this  petition,  which  has  been  presented  to  Congress,  but  which 
has  not  been  acted  upon  at  present. 

I  also  wish  to  state  to  you  that  within  the  walls  of  this  edifice  the  collector  of  the 
port  of  New  York  has  collected  millions  of  dollars,  and  up  to  this  date  is  collecting 
State  and  municipal  taxes  and  tonnage  dues  from  commerce,  in  violation  of  the  Con 
stitution  of  the  United  States ;  in  violation  of  the  Congress  of  the  United  States ;  in 
violation  of.  the  supreme  court  of  the  District  of  Columbia  in  a  case  decided  October 
24, 1867,  (Nautilus  case;)  in  violation  of  the  Supreme  Court  of  the  United  States,  de 
cided  December  term,  1867,  (steamship  Charles  Morgan — New  Orleans  case;)  and,  last, 
in  violation  of  the  orders  of  N.  Sargent,  Commissioner  of  Customs  at  Washington,  dated 
August  13,  1869. 

C.  F.  BAKNES. 

The  committee  adjourned  to  meet  in  Boston  on  Monday,  18th  October. 

BOSTON,  TUESDAY,  October  19, 1869. 

The  committee  met  in  the  rooms  of  the  Board  of  Trade. 

Present :  the  Chairman  and  Messrs.  Buffinton,  Morrell,  Calkin,  Wells, 
and  Holman. 

The  CHAIRMAN  stated  the  object  of  the  committee,  and  invited  the 
gentlemen  appointed  by  the  Board  of  Trade  to  express  their  views  in 
reference  to  the  cause  of  the  depression  of  American  commerce  and  nav 
igation 


NAVIGATION   INTERESTS.  79 

Mr.  EDWAED  S.  TOBEY,  chairman  of  the  Board  of  Trade,  welcomed 
the  committee  to  the  city  of  Boston  and  to  the  rooms  of  the  board,  and 
said  that  the  Board  of  Trade  hailed  the  meeting  of  this  committee  as  an 
auspicious  omen  to  the  interests  of  commerce,  and  as  showing  that  Con 
gress  had  become  impressed  with  the  importance  of  doing  something 
to  restore  the  shipping  interest  of  the  country.  It  was  not  his  purpose 
now  to  present  at  length  any  views  that  he  might  hold  on  the  subject, 
but  rather  to  call  upon  other  members  of  the  Board  of  Trade  to  present 
their  views,  and  in  the  course  of  the  investigation  he  would  endeavor 
to  take  some  proper  opportunity  to  give  a  statement  of  facts  which  had 
come  within  his  own  knowledge,  and  such  deductions  from  those  facts 
as  might  suggest  themselves  to  his  mind.  He  mentioned  the  presence 
in  the  room  of  one  of  the  prominent  representatives  of  the  iron  steam 
ship-building  interest,  the  treasurer  of  the  Atlantic  Works  of  East 
Boston,  Mr.  Smith,  who  was  already  known  extensively  throughout  the 
country  by  his  very  able  communication  on  the  subject  of  iron  steam 
ship  construction. 

Mr.  FRANKLIN  W.  SMITH,  treasurer  of  the  Atlantic  Iron  Works  of 
Boston,  addressed  the  committee.  He  said  that  he  would  not  take  up 
the  time  of  the  committee  by  repeating  what  it  was  better  informed  of 
than  himself,  the  history  of  American  commerce,  its  prosperity  and  de 
cline.  Nor  would  he  trouble  members  of  Congress  with  statistics, 
among  which  they  were  buried  for  a  great  part  of  the  year.  He  only 
wished  that  a  moiety  of  the  intelligence  possessed  by  members  of  Con 
gress  on  this  matter  were  possessed  by  the  people.  If  that  were  so  this 
committee  would  not  be  in  session  to-day.  He  need  not  recall  how,  in 
1861,  the  American  tonnage  was  greatly  in  excess  of  the  tonnage  of  any 
other  nation.  Nor  need  he  recall  the  record  of  the  decline  of  that  com 
merce.  In  1868  there  were  but  six  iron  vessels  built  in  the  United 
States,  and  at  present  he  believed  that  there  was  not  one  iron  vessel  on 
the  stocks  in  this  country.  A  bark  of  six  hundred  or  seven  hundred 
tons,  and  the  iron  bark  Novelty,  built  by  the  Atlantic  Works,  were  the 
only  iron  sailing  vessels  built  in  this  country.  As  to  wooden  shipping 
he  was  not  able  to  follow  its  decline,  the  decline  being  so  rapid.  What 
was  the  reason  for  this  9  The  answer  might  be  given  in  one  word — the 
tariff.  The  contrast  on  this  matter  between  the  United  States  and  Great 
Britain  was  most  painful.  In  1867,  out  of  two  hundred  and  twenty- 
seven  ships  built  upon  the  Clyde,  there  were  but  fourteen  of  wood,  and 
these  averaged  only  one  hundred  and  sixty  tons  each.  He  held  in  his 
hand  a  slip  from  the  Glasgow  Herald  of  August  7,  1860,  detailing  the 
launches  which  had  taken  place  during  the  previous  month.  There  were 
thirteen  of  them,  amounting  in  all  to  thirteen  thousand  nine  hundred 
and  ninety-one  tons,  averaging  nearly  eleven  hundred,  and  all  of  iron. 
Why  could  not  this  be  done  here  ?  Because  of  the  tariff.  He  was  in 
debted  to  one  of  the  able  articles  of  the  New  York  Evening  Post  for  a 
record  of  the  changes  in  the  tariff,  and  of  the  pressure  which  those 
changes  had  brought  to  bear  upon  the  ship-building  interest.  In  1857, 
common  rounds  and  squares  of  iron,  such  as  are  used  in  the  wooden  1 
ship-building  interest,  and  which  were  then  the  great  item  to  be  taxed ' 
in  ship-building,  were  taxed  twenty-four  per  cent,  ad  valorem.  In  1861 ' 
they  were  taxed  fifty  per  cent.,  and  in  1864  one  hundred  and  twelve  per 
cent,  ad  valorem.  It  was  stated  that  by  the  proposed  bill  introduced  by 
Mr.  Moorhead  in  1868,  those  very  bars  of  iron,  essential  in  wooden  ship 
building,  were  struck  at  for  a  rate  of  one  hundred  and  sixty-eight  per 
cent.  He  held  in  his  hand  a  list  showing  the  charges  to-day  of  an  iron 
Bhip  of  one  thousand  tons  burden,  supposing  that  all  her  materials  of 


80  NAVIGATION   INTERESTS. 

foreign  construction  were  imported.    He  submitted  it  in  detail  to  the 
committee,  as  follows : 


Duties  on  materials  for  a  1,000-fo/i  iron  ship. 
IRON. 

53  per  cent.,  plate 530, 000,  duty,  H  cents . 

18  per  cent.,  refined  iron  and  rivets,  180, 000,  duty,  1  cent 

23  per  cent.,  T.  and  angle  or  beams,  230, 000,  duty,  1£  cents. 

3  per  cent.,  forgings 30, 000,  duty,  2  cents . 

3  per  cent.,  castings 30, 000,  duty,  say  1  cent 


$7,950  00 
1, 800  00 
2,875  00 
600  00 
300  00 


100  per  cent.  1, 000, 000  Ibs.,  divided  by  3,  13, 525  00 

4,508  33 
$18,033  33 

RIGGING. 

35,000  pounds  chain  cable,  duty,  2£  cents,  gold \  #,1  ft7C-  /^ 

8,000  pounds  small  rigging-chain,  duty,  2|  cents,  gold $  **» u' 

8,000  pounds  anchors,  2±  cents,  gold 180  00 

8£  tons  Russian  hemp,  $40  ton,  gold  duty ;  or  if  cordage  be  im 
ported,  10  tons,  2,000  pounds  each,  20,000  pounds,  3  cents 600  00 

5  tons  Manilla  hemp,  2,240  pounds,  at  $25  ton,  gold ;  or  if  cord 
age  be  imported,  12,000  pounds,  at  2£  cents 300  00 

2, 155  00 
Add  33i  per  cent 718  33 

2,873  33 

20, 906  66 


If  wire  rigging  be  used,  5  tons,  cost  22  shillings  sterling  for  112  pounds,  duty  35  per 
cent,  ad  valorem ;  costs  now  7-J-  cents,  gold,  for  galvanized,  duty  paid. 

That  was  about  twenty-five  per  cent,  extra  on  the  cost  of  an  iron  ship 
of  one  thousand  tons  in  England.  The  Atlantic  Works  had  recently 
invented  a  tank  vessel  for  the  carriage  of  molasses  in  the  bulk — a  pecu 
liarly  difficult  liquid  to  carry,  because  of  its  expansive  and  fermenting 
qualities.  A  vessel  for  this  purpose  must  be  constructed  of  iron,  so  far  as 
experience  went,  because  it  had  been  found  impossible  to  get  a  wooden 
vessel  strong  enough  and  fixed  enough  in  its  joints  to  hold  those  tanks 
under  all  conditions.  Those  tanks,  therefore,  were  constructed  with  the 
ship,  adding  strength  to  the  ship.  That  vessel  had  been  invented  here 
and  had  been  patented  both  here  and  in  England,  and  had  made  two 
voyages  which  had  been  deemed  to  have  been  an  absolute  and  unquali 
fied  success.  He  might  state  with  entire  safety  that  there  had  been  a 
saving  of  five  per  cent,  on  each  of  those  cargoes  of  molasses.  The  saving 
might  have  been  much  more.  That  vessel  would  bring  five  cargoes  in 
the  season,  which  would  be  a  saving  in  a  single  season  of  twenty-five 
per  cent.  The  molasses  imported  into  Boston  alone  in  a  single  season 
employed  fifteen  vessels,  and  one  concern  in  New  York  employed  fifteen 
vessels  in  the  trade.  The  Atlantic  Works  had  built  one  such  tank  ves 
sel,  and  the  firm  for  which  they  built  it,  as  well  as  other  parties,  desired 
to  have  more  such  vessels.  They  were  ready  to  build  two  on  their  own 
account;  but,  singularly  enough,  they  had  been  actually  stayed  in  the 
building  of  them,  by  the  expectation  of  the  benefits  which  they  were 
now  asking  at  the  hands  of  Congress.  They  did  not  dare  to  build 
those  vessels,  in  the  expectation  that  Congress  would  strike  off  the  duty 
and  reduce  the  valuation  next  spring  from  $10,000  to  $15,000.  The 
building,  therefore,  of  at  least  three  of  those  vessels  had  been  post 
poned  to  another  season.  But  meanwhile  the  Atlantic  Works  Com 
pany  finding  their  hands  tied  as  iron  ship-builders,  and  finding  it  im- 


NAVIGATION    INTERESTS.  81 

possible  to  build  those  brigs  themselves,  wrote  to  England  and  had  an 
offer  from  England  to  build  them  on  the  Clyde  at  twenty-live  per  cent, 
less  than  they  could  build  them  themselves.  They  were  seriously  de 
bating  the  building  of  those  brigs  abroad,  and  having  them  under  a 
foreign  Hag.  This  would  probably  be  the  case  next  year  unless  the 
necessary  relief  were  granted.  He  had  no  doubt  that  the  American 
merchants*  interest  in  the  molasses  trade  would  insist  upon  this  saving 
of  $5,000  per  cargo.  If  America  could  not  supply  those  vessels  England 
would ;  and  if  American  merchants  were  too  patriotic  or  too  timid  to 
put  their  vessels  under  the  English  flag,  they  would  go  abroad  and  give 
to  England,  not  only  the  building  of  the  ships,  but  the  transportation 
besides.  All  that  the  Atlantic  Works  asked  was  a  royalty  on  their 
patent  which  was  registered  abroad. 

He  had  given  the  committee  the  rates  on  bars  and  plate  iron,  but  there 
was  another  item  to  which  he  should  call  especial  attention.  The  duty 
on  beams  and  angle-irons  was  practically  prohibitory.  They  were  now 
rolled  in  this  country  by  only  three  concerns.  In  iron  ship-building  they 
constituted  twenty-three  per  cent,  of  the  entire  work,  and  the  commit 
tee  would  see  the  disadvantage  of  a  monopoly  even  in  the  hands  of  the 
best  of  men,  from  this  fact,  that  no  matter  what  rate  of  tariff  was  im 
posed,  so  long  as  the  construction  of  those  beams  paid  a  profit — as  they 
had  paid  a  large  profit  for  many  years — those  three  mills  had  only  to 
raise  their  scale  of  prices  up  to  just  below  the  cost  of  importation ; 
and  the  consequence  was  that  at  present  all  beams  and  all  angles  had 
their  prices  adjusted  by  the  rate  of  importation.  It  was  natural  that 
this  should  be  so,  and  he  did  not  wish  to  be  understood  as  reflecting,  in 
the  least  degree,  upon  the  patriotic  impulses  or  business  course  of  any 
concern  that  might  pursue  this  policy.  Doubtless  every  concern  in  the 
country  would  consider  it  perfectly  legitimate;  but  with  our  commerce 
to-day  depending  upon  the  closest  possible  competition  and  upon  the 
most  advantageous  circumstances  both  as  to  material  and  labor,  it  was 
certainly  a  most  discouraging  feature  that  twenty-three  per  cent,  of  the 
materials  that  enter  into  the  construction  of  iron  ships  should  be  abso 
lutely  in  the  hands  of  a  monopoly  of  manufacturers.  It  was  not  so  with 
pig  or  other  descriptions  of  iron. 

He  had  placed  in  a  pamphlet,  which  he  had  had  the  honor  to  submit 
to  Congress,  the  reasons,  drawn  from  most  experienced  authority,  show 
ing  why  wooden  ships  were  to-day  practically  superseded  by  iron  ships. 
In  Calcutta  and  San  Francisco  iron  ships  commanded  five  shillings  ster 
ling  a  ton  premium  in  charters,  because  of  their  durability,  because  of 
their  increased  capacity,  because  of  the  fine  condition  in  which  mer 
chandise  could  be  transported  in  them,  and  because  of  the  rates  of  in 
surance.  While  America  had  in  her  magnificent  forests  the  monopoly 
of  material,  and  thus  gained  her  prestige  on  the  ocean,  England  was 
at  the  disadvantage  that  America  was  at  now.  Now  things  were  re 
versed;  the  advantages  of  coal,  iron,  and  labor  England  had  to-day, 
and  she  was  building  ships  and  selling  them  all  over  the  world.  Prus 
sia  was  protecting  her  iron  interest  by  charging  ten  per  cent,  upon  the 
iron  ships  bought  abroad,  while  she  charged  only  five  per  cent,  upon 
the  wooden  ships.  But  England,  despite  that,  was  building  for  all  the 
world.  J.  S.  Forbes  &  Co.,  of  Boston,  had,  last  March,  sent  to  the  At 
lantic  Works  specifications  for  a  first-class  iron  ship  for  Chinese  waters. 
The  Atlantic  Works  had  not  pretended  to  do  any  better  than  build  the 
ship  at  cost.  They  had  got  one  contract  from  the  Boston  and  Balti 
more  line  of  steamships,  and  were  glad  to  get  it  at  cost,  because  such 
establishments  as  theirs  were  better  kept  running.  To  stop  them, 
GNI 


82  NAVIGATION   INTERESTS. 

causes  great  deterioration.  They  had  received  those  specifications  from 
Messrs.  J.  S.  Forbes  &  Co.,  and  had  endeavored  to  figure  them  down  to 
the  necessary  point ;  but  they  had  despaired  at  the  outset  of  getting 
the  contract.  While  they  were  at  it  they  had  received  a  note  from 
Forbes  &  Co.,  stating,  "  Gentlemen :  We  are  informed  by  cable  that 
this  ship  is  ordered  in  England." 

A  few  days  since  he  had  gone  to  New  York  to  meet  a  gentleman  who 
would  have  ordered  an  iron  ship  for  the  trade  between  New  York  and 
Mexico.  This  gentleman  had  said  that  his  judgment  was  that  in  every 
respect  iron  ships  were  preferable  to  wooden  ones,  and  that  he  intended 
to  build  of  iron,  but  that  when  he  came  to  figure  out  the  cost  and  found 
that  the  absolute  taxes  on  the  materials  entering  into  the  construction 
of  such  a  ship  would  be  from  $40,000  to  $50,000,  he  had  determined  to 
build  a  wooden  ship,  take  the  chances,  and  let  her  rot  out  in  ten  or  fif 
teen  years,  considering  that  the  interest  on  the  difference  would  build 
another  ship.  These  were  the  facts  as  to  the  entire  and  absolute  sup 
pression  of  iron  ship-building  in  the  United  States.  As  to  a  remedy, 
he  should  not  suggest  that  American  ports  should  be  thrown  open  to 
foreign  produce.  For  his  own  part  he  should  be  glad  to  see  American 
products  used  in  preference  to  foreign ;  they  were  better.  He  desired 
to  see,  through  the  influence  of  Congress,  or  through  an  organization  of 
the  merchants  of  the  country,  the  establishment  of  the  authority  of  the 
American  Lloyds  in  rating  ships  equal  to  the  authority  of  the  British 
and  French  Lloyds.  They  should  then  have  the  opportunity  to  take 
into  account  the  admitted  and  unquestioned  superiority  of  American 
iron,  and  could  make  out  a  gain  of  twenty  per  cent,  in  the  cost  of  iron 
ships.  He  had  been  astonished  to  see  that  with  the  American  prestige, 
they  had  not  before  this  time  asserted  an  authority  which  should  be 
equally  authoritative  before  the  world  in  the  matter  of  rating  ships. 
He  could  not  understand  why  the  underwriters  should  compel  Ameri 
can  ship-owners,  who  a  few  years  ago  owned  more  ships  than  any  na 
tion  in  the  world,  to  bring  everything  up  to  a  standard  of  British  or 
French  engineering.  It  seemed  to  him  that  Americans  had  proved  in 
the  history  of  the  last  war  that  the  judgment  of  their  mechanics  as  to 
what  was  strong  and  as  to  what  was  required  to  give  strength,  was 
equal  to  the  judgment  and  intelligence  ot  foreign  engineers.  If  Con 
gress  could  secure  for  American  ship-owners  the  privilege  of  having 
their  ships  rated  by  underwriters  as  authoritatively  as  they  are  now 
rated  by  English  or  French  companies,  Americans  could  go  into  their 
own  mines  and  dig  out  an  iron  superior,  by  from  twenty-five  to  thirty- 
three  per  cent.,  in  strength  to  English  iron,  and  they  could  thus,  with  a 
modified  tariff,  be  in  a  position  to  ask  no  favors  from  any  source  for  the 
restoration  of  their  commerce. 

Mr.  SAMUEL  HALL,  of  East  Boston,  ship-builder,  made  a  statement 
to  the  committee.  He  said  that  the  wooden  ship-building  interest  had 
been  much  depressed  since  the  war.  He  had  built  but  one  ship  since 
the  war,  and  had  one  upon  the  stocks  now.  This  depression  was  owing 
wholly  to  the  high  cost  of  the  ships.  The  high  duties  upon  the  materials 
entering  into  the  construction  of  ships,  made  ships  cost  from  fifty  to  sixty 
per  cent,  higher  than  they  did  previous  to  the  war.  Iron  which  they  used 
to  buy  for  not  exceeding  forty  dollars  per  ton  was  now  eighty  dollars  per 
ton ;  rigging  which  they  used  to  buy  at  eight  cents  per  pound  was  now 
sixteen  cents  per  pound ;  duck  which  they  used  to  buy  at  twenty-eight 
cents  a  pound  was  now  worth  fifty-six  cents ;  and  everything  else  was 
in  the  same  proportion.  Unless  there  was  something  done  to  relieve 
ship-builders  they  would  have  to  give  up  their  business  entirely. 


NAVIGATION   INTERESTS.  83 

Mr.  MORRELL.  The  prices  that  you  speak  of  now  are  in  currency,  as 
compared  with  gold  prices  before  the  war  ? 

Mr.  HALL.  Yes,  sir.  Formerly  we  used  to  take  ships  to  England  and 
sell  them.  I  believe  that  I  took  the  first  ship  to  England  from  this  country 
and  sold  her  there.  Now  I  presume  that  if  the  trade  were  thrown  open  so 
that  the  English  could  send  their  ships  here  to  be  sold,  there  would  be 
no  ships  at  all  built  on  this  side.  We  cannot  compete  with  theln.  They 
can  build  iron  ships  cheaper  than  we  can  build  wooden  ones. 

Mr.  CALKIN.  How  does  the  mechanical  labor  here  compare  with  the 
mechanical  labor  of  England? 

Mr.  HALL.  It  is  much  higher  here  than  it  is  there. 

Mr.  CALKIN.  Do  our  ship-carpenters  here  do  any  more  work  than 
their  ship -carpenters  do? 

Mr.  HALL.  I  think  they  do. 

Mr.  CALKIN.  What  would  the  average  be  ? 

Mr.  HALL.  I  think  that  we  are  degenerating  very  fast  on  that  point 
in  this  country,  so  far  as  my  experience  goes. 

Mr.  CALKIN.  The  reason  why  I  ask  the  question  is  because  the  builders 
of  New  York  gave  it  as  their  opinion  that  the  American  mechanics  were 
superior  to  the  English  mechanics  and  did  more  work ;  and  I  want  to 
get  the  opinion  of  a  Boston  builder  on  that  point. 

Mr.  HALL.  I  think  that  they  do,  as  a  general  thing.  I  think  that  the 
English  hold  on  to  their  own  notion  of  doing  things.  I  do  not  know 
but  that  their  workmen  work  as  hard  as  ours  ;  but  the  means  that  they 
take  to  accomplish  the  work  is  different.  Their  tools  are  not  so  good  as 
ours.  I  think  that  if  Congress  would  relieve  the  ship -builders  by  re 
moving  the  duties  on  the  materials  that  enter  into  the  construction  of 
ships,  it  would  be  a  great  advantage  to  them.  Unless  they  do  so,  I  think, 
in  the  course  of  a  few  years,  there  will  be  no  more  ship-yards  in  this 
country. 

Mr.  WELLS.  I  understood  you  to  state  that  it  costs  to  build  a  ship 
now  from  fifty  to  sixty  per  cent,  more  than  it  did  before  the  war  ? 

Mr.  HALL.  Yes,  sir. 

Mr.  WELLS.  By  removing  all  the  duties  and  allowing  a  drawback  on 
the  materials  entering  into  the  construction  of  wooden  ships,  would  you 
then  be  able  to  compete  with  ships  built  in  the  provinces,  where  timber 
is  equally  as  plenty  as  it  is  here  I 

Mr.  HALL.  If  they  used  the  same  quality  of  timber  that  we  do,  we  could 
build  as  cheap  as  they  can  in  the  provinces ;  but  they  build  their  ships 
out  of  cheaper  timber,  such  as  spruce  and  birch.  I  have  worked  in  the 
provinces  and  know  the  manner  in  which  they  do  their  work. 

Mr.  WELLS.  You  have  been  carrying  on  that  business  for  many  years  ? 

Mr.  HALL.  About  forty-six  years. 

Mr.  WELLS.  What  is  your  opinion  as  to  the  necessary  legislation  of 
Congress  in  order  to  enable  ship-builders  in  this  country  to  compete 
with  foreign  ship-builders  ? 

Mr.  HALL.  I  think  that  if  all  the  articles  used  in  ship-building  were 
admitted  duty  free,  American  ship-builders  would  be  able  to  go  on  as 
formerly. 

Mr.  WELLS.  Suppose  you  were  able  to  go  on,  would  you  find  a  market 
here  for  your  ships? 

Mr.  HALL.  I  see  no  reason  why  we  should  not.  Nothing  but  the  high 
prices  prevents  our  finding  a  market  now.  Enough  of  people  want  ships 
but  cannot  pay  the  prices  for  them. 

Mr.  WELLS.  I  notice  several  ships  lying  idle  here,  and  also  in  New 
York,  as  if  they  had  not  any  business.  How  do  you  account  for  that  ? 


84  NAVIGATION   INTERESTS. 

Mr.  HALL.  There  is  not  a  large  amount  of  tonnage  now,  I  think  not 
near  as  much  as  there  was  before  the  war.  There  are  not  half  the  ships 
in  New  York  now  that  there  were  formerly.  If  it  were  not  for  the  coast 
ing  trade  I  do  not  know  that  there  would  be  hardly  an  American  ship 
to  be  seen.  If  our  ports  were  thrown  open  to  other  nations  and  our 
coastwise  trade  opened  to  them,  we  should  not  have  any  use  at  all  for 
our  ships. 

Mr.  WELLS.  Your  opinion  is  that  if  Congress  should  remove  all  the 
obstructions  in  regard  to  duty,  allowing  ship-builders  a  drawback,  and 
at  the  same  time  should  throw  open  the  purchase  of  ships  in  Europe, 
the  mechanics  in  this  country  could  compete  with  English  mechanics  in 
the  building  of  ships? 

Mr.  HALL.  I  do  not  think  they  could.  If  the  English  were  allowed 
to  put  their  ships  into  the  market,  and  if  our  navigation  laws  were  re 
pealed,  I  do  not  think  there  would  ever  be  any  more  ships  of  any  kind 
built  here. 

Mr.  WELLS.  American  merchants  are  free  now  to  go  and  buy  ships 
abroad  and  to  sail  them  under  the  English  flag? 

Mr.  HALL.  Yes;  and  I  am  told  that  quite  a  number  of  them  are  doing 
it. 

Mr.  MORRELL.  Do  you  understand  that  the  business  as  now  carried 
on  by  the  English  nation  is  profitable ;  that  they  are  making  money  to 
day  in  their  commercial  marine  I 

Mr.  HALL.  I  cannot  say  as  to  that.  I  should  not  think  that  the  busi 
ness  is  depressed  there  as  it  is  here,  because  they  build  much  more 
there,  and  people  are  not  apt  to  follow  a  losing  business  a  great  while. 

Mr.  MOREELL.  But  they  are  willing  to  keep  their  ships  running  even 
when  they  are  not  making  money  ? 

Mr.  HALL.  I  cannot  say  as  regards  the  English  whether  their  shipping 
is  depressed  or  not ;  but  I  know  that  in  this  country  it  is  very  much 
depressed. 

Mr.  CALKIN.  The  question  was  asked  you  whether,  if  the  drawback 
on  the  materials  were  allowed,  and  if  the  navigation  laws  were  repealed 
so  that  capitalists  could  go  abroad  and  buy  ships,  American  mechanics 
could  compete  with  English  ship-builders,  and  you  answered  that  they 
could  not.  Do  you  think  that  if  the  time  were  extended — for  instance, 
if  the  drawback  were  allowed,  and  then  in  the  course  of  four  or  five 
years  the  navigation  larws  were  repealed — the  ship-builders  of  this  coun 
try  could  get  themselves  in  a  position  by  that  time  to  compete  with 
foreign  builders  ? 

Mr.  HALL.  I  do  not  think  they  could. 

Mr.  CALKIN.  You  think  it  would  take  a  longer  time  ? 

Mr.  HALL.  Yes.  If  the  navigation  laws  were  repealed  almost  all  the 
ships  in  the  world  would  be  built  in  England. 

Mr.  CALKIN.  You  understand  niy  question.  It  is  whether,  if  a  draw 
back  were  allowed  for  four  or  five  years  before  the  navigation  laws  were 
repealed,  the  American  mechanics  would  then  be  in  a  position  to  com 
pete  with  the  English  mechanics  ? 

Mr.  HALL.  I  think  not. 

The  CHAIRMAN.  How  long  a  time  would  it  take  for  American  ship 
builders  to  compete  with  foreigners  ? 

Mr.  HALL.  I  do  not  think  they  ever  can.  If  Congress  anticipates 
repealing  the  navigation  laws  it  may  as  well  do  so  to-day  as  wait  for 
five  years  hence.  The  result  would  be  the  same. 

The  CHAIRMAN.  What  are  the  wages  paid  at  present  to  ship-carpen 
ters  and  mechanics  here  I 


NAVIGATION    INTERESTS.  85 

Mr.  HALL.  About  three  dollars  a  clay  in  currency. 

The  CHAIRMAN.  What  were  they  paid  before  the  war — say  from  1854 
to  1800  f 

Mr.  HALL.  Not  exceeding  two  dollars  a  day — from  that  to  one  dollar 
and  seventy-five  and  one  dollar  and  fifty  cents.  I  built  the  first  clipper 
ship,  I  believe,  that  was  built  in  Boston,  the  Surprise,  in  1850,  and  I 
then  paid  one  dollar  and  seventy-five  cents  a  day. 

The  CHAIRMAN.  1850  was  a  year  of  great  depression.  How  was  it  in 
1854,  which  was  a  year  of  great  activity  in  the  building  of  ships  ? 

Mr.  HALL.  Not  so  much  as  in  1852.  In  1852  we  had  the  greatest 
activity  in  ship-building  in  this  country  that  we  ever  had.  I  recollect 
that  I  built  four  ships  from  March  to  December  of  that  year,  of  eleven 
hundred  tons  each. 

The  CHAIRMAN.  What  were  the  average  rates  of  wages  paid  to  first- 
class  nuechanics  from  1850  to  I860  ? 

Mr.  HALL.  It  would  fall  below  two  dollars.  I  should  say  that  one 
dollar  and  seventy -five  cents  would  be  about  the  average,  and  sometimes 
it  went  down  to  one  dollar  and  fifty  cents  for  first-class  mechanics. 

The  CHAIRMAN.  So  that  there  has  been  an  advance  of  fifty  per  cent, 
in  wages? 

Mr.  HALL.  Yes,  sir.  The  carpenter  work  on  a  ship  which  would  then 
cost  about  seven  thousand  dollars  would  now  cost  about  twelve  thousand 
or  thirteen  thousand  dollars. 

The  CHAIRMAN.  You  think,  then,  that  something  more  than  the 
admission  of  the  materials  entering  into  the  construction  of  ships  duty 
free  is  necessary  to  enable  American  ship-builders  to  compete  with  for 
eigners  J? 

Mr.  HALL.  As  long  as  things  remain  as  they  are  now,  the  cost  of 
labor  will  not  recede  much.  Mechanics  are  going  out  of  the  business 
and  seeking  other  employment,  and  there  is  great  scarcity  even  now  of 
mechanics  in  ship-building.  That,  of  course,  enhances  the  cost  of 
wages. 

The  CHAIRMAN.  Do  you  think,  from  your  knowledge  of  the  character 
of  workmen  here,  and  in  Europe,  that  the  difference  in  labor  would  be 
overcome  or  nearly  overcome  by  the  greater  efficiency  of  the  American 
workmen  ? 

Mr.  HALL.  I  do.  It  takes  the  English  a  great  while  to  do  a  little 
work.  They  are  diligent  men,  but  they  are  very  slow. 

The  CHAIRMAN.  How  would  the  cost  of  materials  that  enter  into  the 
construction  of  ships  stand  now  free  of  duty  as  compared  with  the  price 
of  materials  before  the  war,  making  an  allowance  for  the  difference 
between  gold  and  currency  ? 

Mr.  HALL.  The  cost  would  be  considerably  higher  now. 

Mr.  MORRELL.  Does  that  refer  to  timber  as  well  as  to  iron  ? 

Mr.  HALL.  No,  sir ;  to  nothing  but  the  iron ;  the  wood  we  get  here. 

Mr.  MORRELL.  What  is  the  value  of  the  iron  in  wooden  ships  as  com 
pared  with  the  value  of  the  other  materials? 

Mr.  HALL.  A  ship  of  one  thousand  three  hundred  and  fifty  tons,  such 
as  I  am  building  now,  will  take  about  seventy-five  tons  of  bolt  iron  and 
square  iron. 

Mr.  WELLS.  Do  you  not  use  a  great  deal  of  copper  in  the  building  of 
wooden  ships? 

Mr.  HALL.  Yes,  sir. 

Mr.  WELLS.  "VVhat  is  the  difference  between  the  cost  of  copper  now 
and  its  cost  previous  to  the  war  ? 

Mr.  HALL.  We  do  not  now  use  clear  copper. 


86  NAVIGATION   INTERESTS. 

Mr.  WELLS.  You  cover  the  outside  with  copper  ? 

Mr.  HALL.  That  is  sheathing  copper.  Before'  the  war  it  was  worth 
seventeen  cents  a  pound ;  now  it  is  worth  twenty-seven  cents. 

Mr.  CALKIN.  In  case  of  a  repeal  of  the  navigation  laws,  what  would 
be  the  effect  upon  ship-carpenters'  labor  in  this  country  in  the  course  oi 
four  or  five  years  ? 

Mr.  HALL.  There  would  not  be  any  at  all. 

Mr.  CALKIN.  Can  you  take  a  house-carpenter  or  a  wood- worker  of  any 
kind  and  make  a  ship-carpenter  of  him  readily  9 

Mr.  HALL.  No,  sir ;  no  more  than  you  can  take  a  common  mechanic 
and  set  him  to  make  a  watch. 

Mr.  HOLMAN.  What  will  be  the  policy  of  ship-builders  hereafter  in 
regard  to  the  building  of  wooden  vessels  I  Are  wooden  ships  likely  to 
be  built  hereafter  to  any  extent,  or  will  iron  ships  supersede  them  1 

Mr.  HALL.  I  do  not  think  that  iron  ships  at  present,  unless  they  are 
built  much  cheaper,  will  compete  with  wooden  ships. 

Mr.  HOLMAN.  Take  the  commerce  of  the  world. 

Mr.  HALL.  I  thkik  the  tendency  is  toward  iron  vessels. 

Mr.  HOLMAN.  Supposing  that  Congress  should  adopt  a  more  liberal 
policy  by  admitting  foreign  built  vessels  to  American  registration,  only 
excluding  them  from  the  coastwise  trade,  and  supposing  that  a  rebate 
were  allowed  upon  all  the  materials  entering  into  the  construction  of 
ships,  what  effect  would  these  measures,  taken  together,  have  upon  our 
commerce  and  our  ship-building  ?  Would  they  promote  the  one  and 
injure  the  other,  or  would  they  promote  both0? 

Mr.  HALL.  I  should  think  you  would  not  promote  the  ship-building 
interest  by  throwing  the  trade  open  to  foreign  vessels. 

Mr.  HOLMAN.  By  giving  the  coastwise  trade  exclusively  to  American- 
built  ships? 

Mr.  HALL.  I  do  not  think  that  there  is  enough  of  that  to  make  it 
worth  while  building  ships. 

Mr.  HOLMAN.  In  18GO,  when  our  commercial  marine  was  much  larger 
than  it  is  now,  was  not  our  domestic  trade  equal  to  fifty  per  cent,  of  the 
whole  of  our  commerce  ? 

Mr.  HALL.  Congress  can  tell  better  than  I  can  about  that. 

Mr.  HOLMAN.  You  had  no  occasion  to  inquire  into  that  question  ? 

Mr.  HALL.  No,  sir. 

Mr.  HOLMAN.  You  think  that  the  advantages  resulting  from  the 
domestic  trade  to  American-built  ships  are  not  very  important,  and 
that  the  reservation  of  that  trade  to  American-built  ships,  combined 
with  the  use  of  free  materials  in  the  construction  of  ships,  would  not 
promote  our  ship-building,  if  registration  were  granted  to  foreign-built 
vessels  ? 

Mr.  HALL.  No ;  I  do  not  think  that  these  measures  would  be  of  any 
great  benefit;  I  think  that  ship-building  here  would  finally  die  out.  If 
the  government  does  not  do  something  to  protect  the  ship-building  in 
terest  it  certainly  will  die  out,  and  that  very  soon. 

Mr.  HOLMAN.  And  you  think  that  this  would  be  done  in  two  ways : 
first  by  preserving  the  navigation  act ;  and  secondly,  by  allowing  ma 
terials  exempt  from,  internal  and  external  taxes  to  be  used  in  the  con 
struction  of  ships? 

Mr.  HALL.  Yes,  sir. 

Mr.  HOLMAN.  Are  American  capitalists  willing  to  employ  their  capital 
at  as  low  rates  of  interest  in  ship-building  as  English  capitalists  are  °? 

Mr.  HALL   Yes,  I  think  so. 

Mr.    BUFFINTON.  Can    you  tell  whether  the  business  of  building 


NAVIGATION   INTERESTS.  87 

wooden  ships  in  the  provinces  is  about  as  much  depressed  as  it  is  here  ? 

Mr.  HALL.  I  cannot  tell  you.  I  think  there  is  very  little  business 
doing  there. 

Mr.  BUFFINTON.  Have  you  any  means  of  knowing  whether  it  is  de 
pressed  there  as  much  as  it  is  here  ? 

Mr.  HALL.  I  have  not. 

Mr.  JOHN  TAYLOR,  ship-builder  of  Chelsea,  next  made  a  statement  to 
the  committee.  He  said  that  he  agreed  in  the  main  facts  that  had  been 
stated  by  Mr.  Smith  and  by  Mr.  Hall.  What  had  been  said  in  regard 
to  iron  ships  was  equally  applicable  to  wooden  ships,  so  far  as  half  or 
more  of  the  whole  cost  of  the  ship  was  concerned.  He  would  not  add 
to  or  take  from  what  had  been  already  stated.  There  was  great  de 
pression  here  in  the  ship-building  interest.  The  cause  of  that  depres 
sion  had  been  stated,  and  he  did  not  know  that  he  could  add  anything  to 
the  statement.  He  had  been  thirty-five  years  engaged  in  ship-building, 
and  had  constructed  over  one  hundred  large  ships.  He  was  not  con 
structing  any  ships  at  present,  nor  did  he  contemplate  doing  so,  as  he 
had  made  up  his  mind  to  abandon  the  business  altogether,  and  never  to 
build  another  ship.  This  was  for  the  simple  reason  that  it  could  not  be 
done;  that  American  ship-builders  could  not  compete  with  the  ship 
builders  of  other  nations  so  long  as  the  difference  in  the  cost  of  materials 
existed.  He  believed  that  there  were  two  ships  at  present  on  the  stocks 
in  this  port,  but  that  in  two  weeks  from  this  time  there  would  not  be  a 
ship  on  the  stocks  in  Massachusetts.  He  accounted  for  the  fact  that 
there  was  any  ship-building  going  on  now  in  Boston,  by  saying  that  it 
was  in  order  to  keep  the  yards  in  existence  and  to  employ  the  mechanics. 
He  himself  had  done  as  little  as  he  could  possibly  do,  so  as  to  employ 
his  materials  and  workmen,  hoping  ere  long  that  some  assistance  would 
come  to  the  ship-building  interest. 

The  CHAIRMAN.  Can  the  ships  which  are  now  being  built  be  sold  at 
profit  to  the  builder  ? 

Mr.  TAYLOR.  No,  sir;  they  are  being  built  merely  on  account  of  the 
mechanics,  and  for  the  purpose  of  using  up  the  materials  and  keeping 
the  men  together,  in  the  hope  of  better  times. 

The  CHAIRMAN.  Where  have  you  constructed  heretofore  ? 

Mr.  TAYLOR.  In  East  Boston  for  the  last  few  years. 

The  CHAIRMAN.  How  long  is  it  since  you  have  built  any  skips? 

Mr.  TAYLOR.  I  have  one  now  just  about  finished. 

The  CHAIRMAN.  Please  state  to  the  committee  the  rates  of  wages 
which  you  are  paying  to  first-class  mechanics. 

Mr.  TAYLOR.  From  three  to  three  and  a  quarter  dollars  a  day. 

The  CHAIRMAN.  What  were  the  average  rates  of  wages  for  the  same 
kind  of  mechanics  previous  to  the  war — say  from  1852  to  1860  ? 

Mr.  TAYLOR.  In  1852-'3  wages  were  very  high.  In  1850  and  1851, 
and  again  in  1856-'7-'8,  they  were  low.  My  experience  would  vary  a 
little  from  Mr.  Hall's.  I  think  that  the  average  would  reach  quite  as 
high  as  to-day,  and  perhaps  a  little  higher  for  first-class  mechanics.  For 
second-class  mechanics  wages  would  be  very  much  below  that.  A  great 
portion  of  them  would  be  hired  at  from  nine  shillings  a  day  to  one  dollar 
and  seventy-five  cents. 

The  CHAIRMAN.  Reduced  to  gold,  the  present  rate  of  wages  would  be 
about  thirty-five  per  cent,  higher  than  the  rate  of  wages  then  ? 

Mr.  TAYLOR.  Yes,  about  that.  There  has  been  a  great  deal  of  tam 
pering  with  labor  here,  and  that,  in  my  estimation,  has  injured  the  cause 
a  great  deal.  These  societies  here  have  formed  laws  regulating  labor, 
determining  the  hours  of  labor,  &c. 


88  NAVIGATION  INTERESTS. 

The  CHAIRMAN.  How  many  hours  do  your  mechanics  work  now? 

Mr.  TAYLOR.  We  have  worked  ten  hours.  The  navy  yard  here  em 
ploys  about  seven-eighths  of  all  the  ship-carpenters  in  this  vicinity.  There 
they  work  for  only  eight  hours,  and  are  paid  three  dollars  and  twenty- 
four  cents  a  day,  so  that  all  the  ship-carpenters  are  nocking  to  the  navy 
yard. 

The  CHAIRMAN.  What  hours  did  your  mechanics  work  previous  to 
the  war  ? 

Mr.  TAYLOR.  Ten  hours. 

The  CHAIRMAN.  What  effect  does  the  navy  yard  have  upon  labor  ? 
Does  it  tend  to  increase  the  rates  of  wages  in  the  neighborhood  of  the 
yard? 

Mr.  TAYLOR.  Yes,  sir ;  it  always  does. 

The  CHAIRMAN.  So'  that  a  ship  cannot  be  built  as  cheaply  in  the 
neighborhood  of  a  navy  yard  as  remote  from  it  ? 

Mr.  TAYLOR.  No,  sir ;  men  will  always  seek  employment  in  a  navy 
yard  even  at  lower  rates  of  wages  than  they  can  get  at  private  yards. 

The  CHAIRMAN.  How  does  the  price  of  materials  at  the  present  time 
(keeping  in  mind  the  difference  between  gold  and  currency)  compare 
with  the  price  of  materials  before  the  war — say  from  1852  to  1860? 

Mr.  TAYLOR.  If  we  used  white-oak  plank  it  would  be  very  much 
higher ;  yellow  pine  would  be  very  little  higher. 

The  CHAIR3IAN.  How  would  it  be,  taking  the  materials  for  a  ship  right 
through  by  the  ton  ? 

Mr.  TAYLOR.  All  the  outfits,  everything  like  spars  and  rigging,  sails, 
iron,  copper,  and  all  finishing  work,  trimmings,  brass  work,  and  every 
thing  of  that  kind,  is  more  than  one  hundred  per  cent,  higher  in  currency. 

The  CHAIRMAN.  Eeduce  it  to  gold  and  take  the  duty  off,  and  how 
«rould  the  price  of  materials  then  compare  with  the  prices  previous  to 
*,he  war  ? 

Mr.  TAYLOR.  If  the  duties  were  all  taken  off,  I  do  not  think  there 
orould  be  a  great  deal  of  difference,  with  the  rates  reduced  to  gold. 

Mr.  CALKIN.  Do  not  navy  yard  commandants  send  to  the  different 
manufacturing  establishments  in  the  community  and  base  the  price  of 
Aabor  in  the  yard  upon  the  price  of  labor  outside  ? 

Mr.  TAYLOR.  I  do  not  think  that  they  do.  That  is  to  say,  I  do  not 
think  that  they  get  a  fair  representation  of  labor  outside.  Labor  is 
always  higher  in  the  navy  yard  than  it  is  out  of  it.  We  have  several 
classes  of  labor.  There  is  the  repairing  of  ships.  That  labor  fetches  a 
higher  price  than  new  work  does.  For  instance,  if  new  work  were  paid 
at  the  rate  of  three  dollars  a  day,  old  work  would  be  paid  at  the  rate  of 
four  dollars.  The  navy  yard  people  are  more  inclined  to  take  that  kind 
of  labor  as  a  criterion ;  or,  at  all  events,  they  take  that  kind  of  labor  and 
the  new,  and  they  draw  a  line  between  them  which  would  make  the  labor 
on  the  new  ships  higher  than  is  paid  outside. 

Mr.  CALKIN.  Do  you  think  that  ship-carpenters  get  any  higher  wages 
than  they  ought  to  according  to  the  price  of  everything  ? 

Mr.  TAYLOR.  I  do  not  think  they  do.  I  do  not  find  any  fault  with  the 
price  of  labor.  We  do  find  some  fault  with  the  time  that  mechanics 
propose  to  labor. 

Mr.  MORRELL.  You  say  that  you  believe  that  the  vessels  now  being 
built  cannot  be  sold  at  a  profit  to  the  builder.  Do  you  think  that  they 
could  be  sold  at  a  profit,  provided  the  duty  on  all  the  materials  were 
refunded  or  a  drawback  allowed  ? 

Mr.  TAYLOR.  I  do. 


NAVIGATION   INTERESTS.  89 

Mr.  MORRELL.  Do  you  think  that  an  additional  number  of  vessels 
could  be  profitably  put  into  the  service  and  run  at  this  time? 

Mr.  TAYLOR.  Yes,  I  think  we  can  run  our  ships  against  the  world. 

Mr.  MORRELL.  Is  there  a  demand  at  this  time  for  ships  at  any  price? 

Mr.  TAYLOR.  Perhaps  not  at  the  present  moment. 

Mr.  MORRELL.  Do  you  not  think  that  the  want  of  a  demand  for  ves 
sels  has  something  to  do  with  the  depression  in  the  business  just  now? 

Mr.  TAYLOR.  Undoubtedly ;  there  is  no  question  about  that. 

The  CHAIRMAN.  I  suppose  that  you  experienced  periods  of  depression 
before  the  war  ? 

Mr.  TAYLOR.  Oh,  yes. 

Mr.  MORRELL.  You  have  seen  dull  times  in  ship-building  before  ? 

Mr.  TAYLOR.  Yes,  sir;  very  dull  indeed. 

Mr.  MORRELL.  Do  you  not  think  that  the  introduction  of  iron  vessels 
and  of  vessels  of  larger  capacity  propelled  by  steam  has  had  a  great 
deal  to  do  with  the  depression  of  the  ship-building  business? 

Mr.  TAYLOR.  It  may  have ;  I  should  think,  however,  very  little  now. 

Mr.  MORRELL.  One  vessel  of  large  capacity  takes  the  place  of  several 
vessels  of  smaller  capacity  and  makes  quicker  trips? 

Mr.  TAYLOR.  Yes,  that  affects  the  coastwise  trade  and  perhaps  the 
trade  between  here  and  Europe.  It  has  been  asked  whether  iron  ships 
would  finally  supersede  wooden  ones  entirely.  There  are  some  trades 
which  iron  ships  are  not  fit  for.  For  instance,  the  China  trade.  There 
they  prefer  wooden  ships.  In  Calcutta  and  Bombay  iron  ships  have 
quite  the  preference  over  wooden  ones — some  half  dollar  a  ton,  I  think, 
in  freight.  The  question  was  asked  about  our  competing  with  foreign 
labor.  I  am  inclined  to  think  that  we  can  do  so.  I  am  satisfied  in  my 
own  mind  that  we  can.  Three  years  ago  I  was  in  Liverpool  and  had 
some  large  repairs  done  upon  a  ship  there,  and  I  made  up  my  mind  that 
so  far  as  the  labor  was  concerned  we  could  do  the  work  quite  as  cheap. 
Two  years  ago  I  was  in  Bremen,  where  labor  was  very  low — only  sixty 
cents  a  day  for  the  best  mechanics.  I  am  satisfied  that  labor  there  costs 
more  than  it  does  here  in  Boston,  although  we  pay  four  dollars  a  day 
and  they  only  pay  sixty  cents. 

Mr.  WELLS.  Why  do  they  prefer  wooden  ships  to  iron  ships  in  the 
China  trade  ? 

Mr.  TAYLOR.  I  do  not  know.  I  think  that  I  know  the  fact,  but  why 
it  is  I  do  not  know. 

The  CHAIRMAN.  If  you  have  any  other  suggestions  to  make,  the  com 
mittee  will  be  pleased  to  hear  them. 

Mr.  TAYLOR.  In  reference  to  repealing  the  navigation  laws,  it  occurs  to 
me  that  in  that  case  the  government  would  be  more  seriously  affected  than 
even  ship-builders  or  merchants,  for,  as  Mr.  Hall  says,  the  ship-carpen 
ters  would  become  extinct  in  a  short  time,  there  would  be  scarcely 
enough  left  to  repair  old  vessels,  and  then  in  case  of  a  war  like  the  last 
one,  or  in  case  of  a  war  with  England,  (and  such  a  thing  may  be,)  we 
should  be  in  no  position  whatever  to  provide  ships  of  war,  because  our 
mechanics  would  be  all  gone. 

Mr.  WELLS.  Is  not  the  navigation  law  virtually  repealed  already? 

Mr.  TAYLOR.  I  think  not. 

Mr.  WELLS.  There  is  nothing  to  prevent  American  ship-owners  buy 
ing  ships  in  England  and  running  them  under  the  English  flag  ? 

Mr.  TAYLOR.  No,  sir;  but  that  has  its  disadvantages. 

Mr.  WELLS.  It  has  been  shown  before  the  committee  that  it  also  has 
its  advantages,  as  they  get  their  stores  cheaper  and  labor  cheaper. 

Mr.  TAYLOR.  Perhaps  so. 


90  NAVIGATION   INTERESTS. 

Mr.  WELLS.  I  suppose  that  the  disadvantages  are  with  reference  to 
the  title  to  the  property  and  to  the  management  of  it  ? 

Mr.  TAYLOR.  That  is  the  disadvantage  that  I  have  spoken  of. 

Mr.  MORRELL.  Would  not  the  allowance  of  a  drawback  of  duty  on 
all  the  materials  going  into  the  construction  of  a  ship  operate  to  exclude 
the.  use  of  American  materials  I 

Mr.  TAYLOR.  No,  sir ;  it  would  affect  the  prices  of  American  materi 
als,  as  Mr.  Smith  represented. 

Mr.  MORRELL.  Do  you  not  suppose  that  other  interests  are  affected 
by  legislation  the  same  as  your  own J?  Do  you  not  suppose  that  other 
interests  can  be  entirely  wiped  out,  as  well  as  the  ship-building  interest, 
by  adverse  legislation  ? 

Mr.  TAYLOR.  Yes,  sir ;  there  is  no  question  about  that. 

Mr.  MORRELL.  If  you  render  it  impossible  to  produce  those  materials 
in  the  country  profitably — that  is,  if  the  labor  that  produces  them  can 
be  employed  more  profitably  in  other  pursuits  than  in  producing  materi 
als  for  ship-building — Avould  it  not  operate  to  prevent  their  production 
here,  and  to  compel  you  to  buy  foreign  materials  ? 

Mr.  TAYLOR.  Yes,  sir ;  that  would  be  the  tendency,  beyond  a  doubt. 

Mr.  HOLMAN.  It  is  a  fact,  however,  that  certain  interests  have  been 
rather  protected  by  the  events  of  the  war J? 

Mr.  TAYLOR.  Yes,  sir. 

Mr.  HOLMAN.  Has  not  ship-building  been  entirely  depressed  by  the 
war  ? 

Mr.  TAYLOR.  Very  much  so.  It  was  effectually  destroyed.  Those  who 
were  engaged  in  it  were  carrying  it  on  under  great  disadvantages  and 
loss ;  whereas  the  iron  trade  has  been  protected,  so  that  the  people  en 
gaged  in  it  have  been  making  money. 

Mr.  CALKIN.  Do  you  think  that  if  you  were  able  to  build  ships  cheap 
in  Boston  the  Boston  merchants  would  put  their  money  in  them  ? 

Mr.  TAYLOR.    Yes,  sir,  I  do. 

Mr.  HOLMAN.  At  as  cheap  a  rate  as  foreign  capitalists  ?  For  instance, 
will  not  an  English  or  a  French  or  a  Prussian  capitalist  invest  his  money 
in  ships  at  from  four  to  five  and  six  per  cent.  ?  And  with  the  various 
advantageous  modes  of  investing  money  in  the  United  States,  will 
American  capitalists  do  that  ? 

Mr.  TAYLOR.  I  think  they  will.  I  think  that  a  certain  class  of  Amer 
ican  capitalists  would  prefer  to  invest  in  ships  rather  than  in  anything 
else. 

Mr.  HOLMAN.  That  would  be  the  case,  perhaps,  in  commercial  cen 
ters  and  in  ship-building  districts  ? 

Mr.  TAYLOR.  Yes,  sir. 

Mr.  PAUL  CURTIS,  ship-builder,  next  made  a  statement  to  the  commit 
tee.  He  said  that  he  could  not  add  much  to  what  had  been  already  said. 
It  was  very  evident  that  under  the  existing  tariff  ships  could  not  be 
built  in  this  country.  If  a  ship-builder  should  goto  a  merchant  and  ask 
him  to  buy  a  ship,' the  merchant  would  say,  "  No,  our  ships  are  taxed 
too  much.  I  cannot  invest  money  in  them.*'  He  thought  that  there 
would  not  be  any  ship-building  done  in  Boston,  at  present,  were  it  not 
for  the  purpose  of  keeping  up  the  ship-yards.  He  himself  was  not 
building  any  at  present.  He  had  built  a  Ship  this  summer  of  1,418  tons, 
new  measurement. 

The  CHAIRMAN.  Please  state  to  the  committee  the  difference  in  the 
cost  of  the  labor  on  that  ship  now,  and  what  it  would  have  been  before 
the  war — both  in  gold. 

Mr.  CURTIS.  If  you  take  gold  at  one-third  higher  than  currency,  I  do 


NAVIGATION   INTERESTS.  91 

not  think  there  would  be  any  great  difference.  Ship-carpenters  are  work 
ing  probably  as  cheap  as  they  can  work. 

The  CHAIRMAN.  What  were  the  average  rates  of  wages  paid  to  ship- 
carpenters  before  the  war,  say  from  1852  to  18GO "? 

Mr.  CURTIS.  In  California  times  we  were  paying  a  great  deal  more 
than  we  are  paying  now.  That  was  from  1852  to  1854.  There  was  a 
great  deal  of  building  then,  and  frequently  when  we  got  a  ship  built 
she  would  fetch  ten  thousand  or  twelve  thousand  dollars  more  than  the 
contract  price.  Now  it  is  quite  the  reverse.  We  get  a  ship  built  and 
there  is  no  chance  to  sell  her  so  as  to  make  anything  out  of  her.  Lately 
I  have  not  built  any  ships  except  on  contract.  This  ship  that  I  built 
was  built  on  English  account.  They  sent  over  word  that  if  we  could 
build  a  sjiip  at  so  many  pounds  sterling  we  might  go  ahead  and  build 
her.  We  could  not  meet  them  at  first,  but  finally  we  did  get  together 
and  took  the  ship  very  low  and  built  her.  One  of  the  parties  in  Eng 
land,  however,  thought  that  he  preferred  an  iron  ship,  and  he  requested 
us  to  sell  her  on  his  account.  That  ship  was  built  at  some  four  thousand 
or  five  thousand  dollars  less  than  we  could  duplicate  her  for,  and  yet  we 
would  not  find  a  merchant  who  would  buy  that  ship.  She  was  offered 
here  at  two  and  a  half  per  cent,  on  the  cost,  and  there  was  no  one  to 
step  forward  and  buy  her. 

The  CHAIRMAN.  Have  you  made  any  estimate  as  to  the  difference  in, 
th^  enhanced  cost  of  materials  at  present  and  before  the  war  <? 

Mr.  CURTIS.  Hard  pine  is  about  a  third  higher.  Before  the  war  we 
could  get  hard  pine  at  twenty- five  cents,  and  now  we  are  paying  from 
thirty-six  cents  to  thirty-eight  cents. 

The  CHAIRMAN.  How  is  it  as  to  the  cost  of  iron  ? 

Mr.  CURTIS.  Iron  is  a  great  deal  higher. 

The  CHAIRMAN.  How  much  is  the  total  cost  of  iron  to-day  that  is  put 
into  a  thousand- ton  ship  all  fitted  for  sea  ? 

Mr.  CURTIS.  I  do  not  know  exactly.  All  that  I  know  is  that  the  low 
est  ever  paid  for  iron  was  thirty-seven  dollars  a  ton,  and  now  we  are 
paying  somewhere  about  eighty  dollars. 

Mr.  MORRELL.  When  did  you  buy  iron  at  that  price  ? 

Mr.  CURTIS.  J  guess  four  or  five  years  before  the  war.    I  imported  it. 

The  CHAIRMAN.  You  were  going  on  to  state  the  cost  of  all  the  mate 
rials  entering  into  the  construction  of  a  ship  ? 

Mr.  CURTIS.  Mr.  McKay  says  that  he  went  into  a  careful  calculation, 
and  that  he  made  out  the  difference  in  the  cost  of  a  thousand-ton  ship, 
caused  by  the  tariff,  to  be  from  eight  thousand  to  ten  thousand  dollars. 

Mr.  WELLS.  What  does  it  cost  to  build  a  wooden  ship  of  that  ton 
nage? 

Mr.  CURTIS.  We  can  build  her  for  about  eighty  dollars  a  ton  in  cur 
rency. 

Mr.  MORRELL.  What  would  she  have  cost  from  1855  to  18GO  ? 

Mr.  CURTIS.  You  would  have  got  her  for  about  fifty-five  dollars  a  ton. 

The  CHAIRMAN.  Do  you  mean  fitted  out  for  sea1? 

Mr.  CURTIS.  Yes,  sir.  I  have  rigged  many  a  ship  for  eleven  thousand 
or  twelve  thousand  dollars.  This  ship  which  I  have  just  sent  away  cost 
us  twenty -five  thousand  dollars  for  rigging,  over  and  above  the  hull. 

The  CHAIRMAN.  That  is  a  great  deal  more  than  the  difference  which 
you  have  just  stated  as  the  difference  on  all  the  materials. 

Mr.  CURTIS.  These  ships  may  not  have  been  quite  as  large;  but  for 
a  number  of  years  the  price  of  rigging  a  ship  did  not  vary  a  thousand 
dollars.  It  would  be  from  eleven  thousand  to  twelve  thousand  dol- 


92  NAVIGATION  INTERESTS. 

lars.    At  present  they  are  using  iron  with  the  rigging,  and  they  would 
probably  use  it  more  than  they  do  if  it  were  not  for  the  high  tariff  on  it. 

The  CHAIRMAN.  Is  it  used  to  any  great  extent  upon  wooden  ships  ? 

Mr.  CURTIS.  There  have  been  three  or  four  lately  rigged  with  it  ;  -this 
one  which  I  have  just  sent  away  was  rigged  with  iron  rigging;  but  I 
believe  our  merchants  think  that  they  would  rather  have  the  hemp  rig 
ging,  because  the  old  hemp  will  sell  for  enough  to  pay  for  the  wear; 
they  use  the  hemp  here  for  some  time,  and  then  they  go  to  England  and 
put  in  wire  rigging,  and  the  hemp  is  then  worth  as  much  to  sell  as  the 
wire  costs  in  England. 

Mr.  HOLMAN.  Prior  to  I860  to  what  extent  were  vessels  built  by  ship 
builders  of  Boston  for  foreign  capitalists  ? 

Mr.  CURTIS.  When  we  built  ships  on  our  own  account,  if  -we  could 
not  sell  them  here  we  sent  them  to 'Europe;  and  there  were  a  great 
many  built  here  and  sold  in  that  way. 

Mr.  HOLMAN.  Do  you  know  of  any  having  been  built  by  contract 
with  foreign  capitalists  prior  to  1860  ? 

Mr.  CURTIS.  Yes,  sir;  I  built  some  myself,  and  I  believe  two  or  three 
since  1860  for  the  firm  of  Warren  &  Co.;  four  years  ago  I  built  a 
wooden  ship  for  them  of  one  thousand  three  hundred  or  one  thousand 
four  hundred  tons ;  two  or  three  years  before  that  I  built  one  of  one 
thousand  one  hundred  or  one  thousand  two  hundred  tons  for  them. 
I  do  not  know  whether  we  can  compete  with  the  English  in  iron-ship 
building ;  we  cannot  at  present ;  but  I  am  satisfied  that  we  can  in 
wooden-ship  building  if  we  could  have  some  relief  on  the  tariff  on  our 
materials. 

Mr.  HOLMAN.  You  think  that  if  the  materials  were  relieved  from  taxa 
tion  our  ship-builders  could  compete  with  English  ship-builders  as  to 
wooden  vessels  ? 

Mr.  CURTIS.  Yes,  sir. 

Mr.  HOLMAN.  But  you  think  it  doubtful  as  to  iron- ship  building,  sup 
posing  that  iron  were  relieved  entirely  from  duty? 

Mr.  CURTIS.  We  should  want  a  little  more  experience  than  we  have 
got;  the  English  are  building  their  iron  ships  very  scientifically — that  is, 
they  have  got  fairly  under  way,  and  it  would  require  some  time  for  us 
to  do  so. 

Mr.  HOLMAN.  Is  it  not  an  advantage  to  the  English  ship-building  in 
terest  that  the  rate  of  interest  for  capital  in  England  is  low  ? 

Mr.  CURTIS.  Undoubtedly ;  at  the  same  time  I  have  built  three  ships 
for  an  English  house  within  the  last  six  or  seven  years. 

Mr.  CALKIN.  Where  does  the  government  get  its  mechanical  labor 
from  for  the  navy  yards — ship- carpenters,  calkers,  engineers,  boiler- 
makers,  &c.  *? 

Mr.  CURTIS.  It  gets  them,  of  course,  from  private  yards. 

Mr.  CALKIN.  The  government  does  not  educate  mechanics  of  any  kind 
in  the  navy  yards  ? 

Mr.  CURTIS.  Xo,  sir ;  apprentices  are  very  seldom  taken. 

Mr.  MORRELL.  I  understood  you  to  say  that  a  ship  which  formerly 
cost  fifty-five  thousand  dollars  would  now  cost  about  eighty  thousand 
dollars  f 

Mr.  CURTIS.  Yes,  sir ;  it  would  not  vary  much  from  that. 

Mr.  MORRELL.  That  is  eighty  thousand  dollars  in  currency  against 
fifty-five  thousand  dollars  in  gold  beforcfthe  war  ? 

Mr.  CURTIS.  Yes,  sir. 

Mr.  MORRELL.  That  is  twenty-five  thousand  dollars  in  currency  over 
the  gold  cost  ? 


NAVIGATION   INTERESTS.  93 

Mr.  CURTIS.  Perhaps  eighty  dollars  a  ton  is  a  little  more  than  a  ship 
would  cost  now. 

Mr.  MORRELL.  I  think  it  was  stated  in  New  York  that  a  ship  could 
be  built  for  seventy-five  dollars  a  ton. 

Mr.  CURTIS.  We  took  an  account  of  stock  before  we  commenced  to 
build  this  last  ship,  and  we  took  an  account  of  stock  after  we  got  through. 
We  took  the  contract  for  less  than  eighty  dollars  a  ton ;  but  we  lost 
money  on  it.  For  a  thousand-ton  ship  I  should  say  that  eighty  dollars 
a  ton  was  a  fair  price  j  but  for  a  larger  ship  it  could  be  done  cheaper. 
It  does  not  cost  so  much  a  ton  to  rig  a  large  ship  as  it  does  to  rig  a 
small  one. 

Mr.  MORRELL.  If  all  the  duties  were  taken  from  the  materials  that 
entered  into  the  construction  of  that  ship,  how  much  cheaper  could  you 
have  constructed  her  f 

Mr.  CURTIS.  1  have  not  gone  into  that  question ;  I  only  know,  from 
what  Mr.  McKay  says,  that  on  a  thousand-ton  ship  the  difference  would 
be  about  eight  thousand  dollars. 

Mr.  MORRELL.  About  eight  dollars  a  ton  ? 

Mr.  CURTIS.  Yes,  sir. 

Mr.  MORRELL.  Would  the  cheapening  of  a  ship  eight  dollars  a  ton 
enable  you  to  find  work  for  it  in  this  port  ? 

Mr.  CURTIS.  I  think  it  would ;  I  think  our  merchants  would  give  con 
siderably  more  for  an  American-built  ship  than  for  a  foreign-built  ship. 

Mr.  MORRELL.  Then  it  seems  that  the  whole  matter  lies  in  the  cheap 
ening  of  a  thousand-ton  ship  from  eight  thousand  dollars  to  ten  thou 
sand  dollars ;  would  it  not  be  a  greater  boon  to  the  ship-owner  if  he 
could  get  the  supplies  of  that  ship  relieved  from  duty  rather  than  have 
the  cost  cheapened  to  that  extent  ? 

Mr.  CURTIS.  The  ship-owner  would  evidently  want  some  other  things 
off.  For  instance,  if  Mr.  McKay  is  going  to  carry  his  ship  to  New  York, 
he  has  got  to  pay  a  year's  license  on  her  in  order  that  he  may  carry  her 
to  New  York  and  sell  her.  I  understand  that  it  costs  six  hundred  dol 
lars  to  get  a  ship  sent  there. 

Mr.  MORRELL.  Is  not  that  tax  in  itself  more  important  than  the  duty 
on  the  materials  ? 

Mr.  CURTIS.  All  these  things  go  to  depress  the  business. 

Mr.  HOLMAN.  After  the  vessel  is  constructed  can  the  American  owner 
mil  her  as  cheap  as  the  English  or  the  French  owner? 

Mr.  CURTIS.  I  have  no  doubt  that  he  can,  and  cheaper ;  he  pays  a 
little  more  to  his  men  j  but  he  takes  less  of  them,  and  they  are  more 
efficient. 

The  CHAIRMAN.  Do  you  run  ships  as  well  as  build  them  ? 

Mr.  CURTIS.  I  am  to  some  extent  a  ship-owner.  We  are  often  obliged 
to  take  one-eighth  of  a  vessel  for  the  sake  of  getting  the  contract  to 
build  her. 

The  CHAIRMAN.  Do  ship-builders  here  generally  own  interests  in  the 
ships  that  they  build  ? 

Mr.  CURTIS.  There  has  been  very  little  of  that  business  done  here. 
Ship-builders  have  depended  upon  the  merchants.  There  is  where  we 
have  not  done  so  well  as  the  people  of  .Maine  have.  The  ship-builders 
in  Maine  have  owned  parts  of  the  ships,  and  there  is  more  money  made 
in  running  ships  than  there  is  in  building  them. 

Mr.  HOLMAN.  Do  our  merchants  attach  any  importance  to  the  custom 
that  prevails  in  some  European  countries  of  allowing  ships'  stores  to  be 
taken  out  of  bond  free  of  duty  ?  Is  that  a  matter  of  any  importance  in 
any  of  our  lines  of  trade! 


94  NAVIGATION   INTERESTS. 

Mr.  CURTIS.  That  is  not  a  subject  with  which  I  am  familiar. 

The  CHAIRMAN.  Please  state  the  effect  oil  the  ship-building  interest 
of  the  tariff  011  copper. 

Mr.  CURTIS.  I  hear  it  stated  that  you  can  get  your  yellow-metal 
some  seven  or  eight  cents  a  pound  cheaper  in  England  than  we  can  get 
it  here. 

The  CHAIRMAN.  What  is  the  general  practice  of  ship-builders  and 
ship-owners  in  reference  to  the  coppering  of  vessels  ?  Is  it  generally 
done  here  or  on  the  other  side  of  the  water  ? 

Mr.  CURTIS.  If  vessels  are  going  to  California,  they  are  coppered 
here.  If  they  are  going  to  a  cotton  port  and  thence  to  Europe,  they 
wait  till  they  get  over  there. 

The  CHAIRMAN.  If  the  cost  of  a  ship  at  the  present  time  is  eighty 
dollars  per  ton  here,  would  it  be  as  low  as  that  if  there  was  the  usual 
amount  of  ship-building  being  done?  In  other  words,  is  not  the  cost 
reduced  by  the  limited  amount  of  business  ? 

Mr.  CURTIS.  Probably  wages  would  go  higher  if  there  was  much 
work  doing ;  but  they  are  repairing  vessels  at  the  navy  yards  and  are 
employing  a  great  deal  of  labor.  That,  however,  is  local  and  tem 
porary. 

The  CHAIRMAN.  If  the  navy  yard  were  not  in  operation  would  the 
rates  of  wages  be  lower? 

Mr.  CURTIS.  Yes,  sir. 

The  CHAIRMAN.  And  on  the  other  hand,  if  ship-building  for  mercan 
tile  purposes  were  increased,  that  would  increase  the  cost? 

Mr.  CURTIS.  That  would  bring  it  up  again,  probably. 

The  CHAIRMAN.  If  there  were  ten  or  fifteen  ships  building  here  when 
you  were  building  yours,  would  it  have  cost  you  any  more  for  the  labor ; 
and  if  so,  how  much  more  ? 

Mr.  CURTIS.  Undoubtedly,  if  there  were  more  ships  building  with 
the  same  state  of  things  in  the  navy  yard,  there  is  no  doubt  but  wages 
would  be  higher ;  but  that  is  merely  local  and  confined  to  the  neighbor 
hood  of  navy  yards.  Of  course  the  more  business  that  there  is  doing, 
the  more  wages  we  have  got  to  pay. 

The  CHAIRMAN.  Does  not  that  thing  always  regulate  itself?  Does 
not  the  increased  business  alwavs  enable  you  to  pay  the  increased  cost 
of  labor  ? 

Mr.  CURTIS.  Certainly. 

The  CHAIRMAN.  Do  you  think  that  you  could  build  a  ship  for  eighty 
dollars  a  ton  if  labor  was  in  as  large  a  demand  at  present  as  it  was  in 
1860? 

Mr.  CURTIS.  I  do  not  suppose  that  I  could.  I  suppose  that  that 
would  increase  the  cost  of  the  ship. 

Mr.  MORRELL.  Was  there  not  a  time  previous  to  the  war  when  there 
was  a  large  demand  for  ships,  and  when  you  could  not  produce  them 
for  fifty-five  dollars  a  ton  ? 

Mr.  CURTIS.  In  California  times,  when  everybody  went  on  ships,  and 
when  they  could  get  freight  enough  to  pay  for  the  ship,  they  wanted 
ships  built  in  a  hurry,  and  then  wages  were  high ;  but  just  before  the 
war  the  business  was  very  much  depressed ;  labor  was  low,  and 
materials  and  everything.  That  is  the  time  when  ships  could  be  built 
at  fifty-five  dollars  per  ton. 

The  CHAIRMAN.  In  your  opinion,  providing  the  materials  that  enter 
into  the  construction  of  ships  were  admitted  free  of  duty,  you  could 
then  build  ships  in  competition  with  foreign  ship-builders? 

Mr.  CURTIS.  We  could  build  wooden  ships  j  I  have  no  doubt  of  that. 


NAVIGATION   INTERESTS.  95 

As  to  iron  ships,  I  have  no  experience  that  would  enable  me  to  answer 
the  question. 

The  CHAIRMAN.  But  you  think  there  is  no  doubt  that  the  remission 
of  the  duties  would  enable  you  to  build  wooden  ships  here  as  cheap  as 
before  ? 

Mr.  CURTIS.  I  have  no  doubt  of  it. 

The  CHAIRMAN.  Do  you  believe  there  would  be  the  demand  for  the 
ships  in  case  they  were"  built  at  that  reduced  rate  I 

Mr.  CURTIS.  I  can  only  say  that  that  is  what  the  merchants  estimate. 

Mr.  MORRELL.  Is  it  not  more  the  tax  to  which  the  ship  is  subjected 
after  she  is  built  that  merchants  object  to,  rather  than  the  enhanced 
cost  of  the  ship  itself? 

Mr.  CURTIS.  That  is  a  question  which  had  better  be  answered  by  the 
merchants. 

Mr.  WELLS.  Speaking  about  coppering  those  ships,  what  is  the  ex 
pense  of  coppering  a  thousand-ton  ship  ?  How  many  tons  of  copper 
does  it  require? 

Mr.  CURTIS.  I  do  not  know  that  I  can  answer  that  question.  Cop- 
peri  Dg  is  an  extra  charge,  and  it  is  not  very  often  that  we  copper  ships 
ourselves. 

The  CHAIRMAN.  If  the  price  of  a  ship  is  eighty  dollars  per  ton  fitted 
out  for  sea,  does  that  include  a  copper  or  metal  bottom  ? 

Mr.  CURTIS.  No,  sir. 

The  CHAIRMAN.  How  much  would  that  increase  the  cost  of  a  vessel 
of  one  thousand  tons  ? 

Mr.  CURTIS.  I  suppose  about  $4,000  or  $5,000,  or  four  dollars  and 
fifty  cents  a  ton. 

Mr.  E.  H.  DERBY  next  addressed  the  committee.  The  committee 
was  aware  that  the  American  tonnage,  when  it  culminated  in  1851,  had 
reached  the  point  of  about  five  and  a  half  million  tons.  It  had  risen 
just  above  the  tonnage  of  England.  Now,  American  tonnage  had  de 
creased  to  4,300,000  tons,  and  the  English  tonnage  had  risen  to 
7,300,000,  and  was  at  present  about  seven  millions.  During  the  late 
war,  and  while  England  drew  the  great  bulk  of  her  cotton  from  India, 
the  voyage  occupied  nearly  a  year ;  but,  when  the  war  ended  and  Eng 
land  again  drew  her  cotton  from  America,  the  voyage  was  shortened 
more  than  half,  so  that  less  than  half  the  tonnage  was  required  for  that 
business.  That  had  some  effect  in  diminishing  English  tonnage,  and  an 
immediate  check  was  given  to  ship-building  in  England,  which  had  been 
exceedingly  rapid  during  the  war,  the  tonnage  having  nearly  doubled. 
Many  American  vessels  had  been  placed  under  the  English  flag,  and 
the  consequent  increase  of  English  tonnage  and  decrease  of  American 
tonnage  had  been  very  great.  With  the  close  of  the  war,  when  American 
ships  again  entered  into  the  field  of  commerce,  there  was  a  great  check 
given  to  English  tonnage ;  from  the  end  of  the  war  to  the  present  time 
there  had  been  rather  a  diminution  than  increase  of  English  tonnage; 
but  still  the  disparity  between  that  and  the  American  tonnage  was  very 
great. 

By  referring  to  statistics  of  American  tonnage  it  would  be  found  that 
now  the  coasting  trade  preponderated  greatly  over  the  foreign  trade. 
By  analyzing  the  returns  of  about  nine  months  of  the  past  fiscal  year— 
from  June  to  April — he  found  that  the  arrivals  and  clearances  in  the 
domestic  trade  were  fifty-one  million  tons,  and  the  arrivals  and  clearances 
in  the  foreign  trade  only  seventeen  millions,  showing  that  the  amount  of 
business  done  in  the  coasting  trade  (the  voyages  being  shorter)  was  nearly 
three  times  as  great  as  in  the  whole  foreign  trade.  When  he  came  to 


96  NAVIGATION   INTERESTS. 

analyze  the  foreign  trade  he  found  that  of  this  seventeen  million  tons  (of 
which,  in  former  times,  two-thirds  were  American  and  one-third  foreign) 
two-thirds  were  foreign  and  one-third  American,  the  American  dwindling 
from  year  to  year,  and  the  foreign  increasing.  He  found  that,  during 
those  nine  months  which  he  had  examined,  the  increase  in  the  foreign 
tonnage  was  at  the  rate  of  fourteen  per  cent.,  and  the  diminution  in  the 
American  tonnage  was  at  the  rate  of  twenty-eight  per  cent. ;  so  that  it 
would  be  seen  that  the  American  tonnage  engaged  in  the  foreign  trade 
was  being  very  rapidly  extinguished,  and  was  being  driven  from  the 
ocean. 

There  was  on  the  files  of  Congress  at  Washington  a  very  valuable  re 
port  on  the  commerce  of  the  United  States,  which  contained  the  reports 
of  the  United  States  consuls  at  all  the  foreign  ports.  That  of  Mr.  Morse, 
consul  to  London,  showed  that  before  the  war  the  American  tonnage 
engaged  in  the  carrying  trade  of  the  world  was  two  and  a  half  million  tons, 
of  English  shipping  very  nearly  an  equal  amount,  the  aggregate  of  all 
the  rest  not  coming  up  either  to  the  American  or  English.  He  (Mr. 
Derby)  entertained  no  doubt  that  that  two  and  a  half  millions  of  Ameri 
can  tonnage  was  now  reduced  to  five  or  six  or  seven  hundred  thousand 
tons,  (less  than  one-third  of  what  it  had  been,)  and  that  that  small  pro 
portion  was  rapidly  diminishing. 

The  condition  of  American  shipping  at  present  was,  that  in  the  coast 
wise  trade  it  was  gradually  and  slowly  increasing,  particularly  on  the 
rivers  and  lakes,  and  a  little  on  the  coast ;  and  that  in  the  foreign  trade 
there  was  an  immense  diminution.  While  the  schooners,  brigs,  and  small 
steamboats  were  increasing  there  was  a  great  diminution  in  the  construc 
tion  of  ships.  For  instance,  before  the  war  there  were  on  the  average 
three  hundred  and  fifty  ships  a  year  built ;  now  that  three  hundred  and 
fifty  had  dwindled  to  sixty,  and  those  were  employed  almost  entirely  in 
the  coastwise  trade.  It  had  become  apparent  from  the  course  of  events 
that  American  vessels  were  being  driven  from  the  ocean  in  competition 
with  foreign  vessels,  that  Americans  could  not  hold  their  own  in  the 
foreign  trade,  and  that  all  they  could  do  was  to  cling  to  the  coastwise 
trade. 

What  had  caused  this;  and  how  was  it  to  be  remedied  ?  It  had  been 
said  that  the  diminution  in  American  shipping  was  due  to  the  war.  They 
had  lost  by  privateers  and  British  pirates  between  one  and  two  hundred 
thousand  tons  of  shipping,  but  that  did  not  explain  the  loss  of  tonnage. 
The  explanation  was  in  the  diminution  in  ship-building,  and  in  the  de 
parture  of  vessels  from  the  American  flag  to  the  British  flag.  Thus  the 
tonnage  of  England  had  been  increased,  and  that  in  the  United  States 
very  materially  diminished. 

The  difficulty  in  which  commerce  was  at  this  moment  was  that,  by  the 
legislation  of  Congress,  American  vessels  were  shut  out  from  the  foreign 
trade.  First,  the  vessels  that  had  gone  under  a  foreign  flag  were  for 
bidden  by  law  to  return.  They  could  not  come  back  again.  If  a  sheep 
were  lost  it  might  be  recovered  and  brought  back  to  the  fold,  but  the 
ship  once  gone  was  gone  forever.  Such  was  the  legislation  of  Congress. 
He  would  say  a  word  for  those  parties  who  had  parted  with  their  ships. 
He  regarded  them  as  among  the  most  meritorious  merchants  of  the 
country.  The  duty  of  the  Bailor  was  to  save  his  ship,  to  cling  to  his  ship, 
and  to  bring  her  safe  back  to  port.  From,  time  immemorial  it  had  been 
the  custom  in  time  of  war  to  put  ships  under  a  neutral  flag,  and  it  had 
always  been  considered  perfectly  legitimate  to  do  so.  During  the  late 
war  the  United  States  navy  could  give  no  protection  to  commerce.  No 
armed  ships  could  be  spared  to  take  care  of  American  commerce  oil  the 


NAVIGATION   INTERESTS.  97 

open  sea.  He  believed  that  there  had  not  been  a  convoy  during  the 
war,  the  armed  ships  being  employed  in  blockading  southern  -ports,  and 
properly  so  employed.  The  question  that  addressed  itself  to  the  com 
mittee  and  to  Congress  was  a  question  of  common  sense.  Was  it  to  the 
interest  of  the  country  to  save  its  ships  ?  He  held  that  it  was  to  the 
interest  of  the  country  to  save  the  ship,  and  to  bring  her  safe  to  port. 
She  could  now  return  safe  to  port  if  Congress  would  only  permit  her. 
The  question  was  whether  Congress  would  compel  an  American  owner 
to  continue  still  to  sail  his  vessel  under  the  English  flag,  or  permit  him 
to  bring  her  back  to  her  own  country.  These  ships  could  still  make  good 
whalers,  and  render  good  service  in  carrying  oil  from  the  Pacific  and 
Atlantic.  They  could  render  good  service  in  the  Pacific  trade,  carrying 
lumber  from  Washington  Territory  to  California,  He  did  not  represent 
one  of  them  directly,  but  he  would  respectfully  ask  that  the  door  be 
opened  to  them  and  that  they  may  be  brought  home  to  diminish  by  so 
much  the  tonnage  of  England  and  increase  that  of  the  United  States. 

He  presumed  that  at  the  end  of  the  war  there  were  nearly  a  million 
tons  of  American  shipping  sailing  under  the  British  flag.  He  did  not  sup 
pose  that  there  were  now  more  than  four  or  live  hundred  thousand  tons, 
and  he  would  ask  that  every  American-built  ship  be  permitted  to  come 
back.  If  the  government  did  not  take  care  of  them  during  the  war  was 
it  not  proper  that  they  should  take  care  of  themselves,  and  should  they 
not  now  have  the  opportunity  to  return  I 

Passing  from  that  subject  to  the  subject  of  those  duties  that  precluded 
the  building  of  ships  in  the  United  States,  he  would  say,  in  the  first 
place,  that  by  the  navigation  act  foreign-built  ships  are  prohibited  from 
getting  an  American  registry.  He  suggested  that  it  would  be  politic 
to  permit  some  foreign-built  vessels  to  be  owned  and  registered  in 
the  United  States  on  the  payment  of  a  duty.  If  iron  ships  could  be 
built  cheaper  in  England  than  in  America  let  them  come — not  freely,  so 
as  to  break  down  American  mechanics,  but  under  a  duty  of  ten  or  fif 
teen  per  cent.,  or  $10  or  $15  per  ton ;  and  then  let  a  remission  of  duty  to 
the  same  amount  be  made  to  the  American  ship-builder.  He  would  not 
be  in  favor  of  taking  the  duty  directly  off  the  foreign  commodity  used 
in  ship-building,  but  would  make  a  general  remission  of  duties  to  the 
amount  of  $10  per  ton.  That  was  Mr.  McKay's  estimate  of  the  differ 
ence  in  the  cost  of  a  thousand-ton  iron  ship  caused  by  the  tariff,  not  $8 
per  ton,  as  had  been  mentioned  to-day.  He  would  let  that  sum  go  to 
the  American  ship-builder,  and  let  it  go  to  buy  American  goods  instead 
of  foreign.  He  had  been  lately  in  the  provinces,  (having  made  four 
reports  on  the  subject  of  reciprocal  trade,)  and  he  found  that  labor  there 
was  little  less  than  in  the  United  States ;  that  ship-building  materials 
were  inferior  in  quality,  but  were  suitable  for  building  a  cheap  class  of 
vessels  that  would  endure  for  only  two-thirds  or  one-half  the  length  of 
time  that  the  white-oak  vessels  built  in  the  United  States  last.  Still, 
they  made  them  very  cheap,  and,  for  certain  purposes,  they  came  in  com 
petition  with  the  vessels  built  in  the  United  States.  Formerly  those 
vessels  had  carried  lumber  to  England,  Ireland,  and  Scotland,  but,  under 
the  free-trade  system,  they  were  now  excluded  from  all  but  the  western 
coasts.  Norway,  Denmark,  and  Prussia  were  sending  supplies  to  the 
eastern  coasts,  and  TV  ere  getting  round  to  the  Bristol  Channel,  where  the 
competition  was  about  equal.  He  entertained  the  very  confident  opinion 
that  if  the  duty  on  ship-building  materials  were  virtually  taken  off',  by 
making  a  concession  of  so  much  per  ton,  American  merchants  and  ship 
builders  would  be  enabled  not  only  to  supply  their  own  wants  but  to  go 
into  the  market  and  again  sell  ships  abroad.  There  should  be  a  reinis- 

7NI 


98  NAVIGATION   INTERESTS. 

sion  of  $10  per  ton,  and  at  the  same  time  there  should  be  another  change 
which  he  had  seen  foreshadowed  the  other  day  in  California — .the  resto 
ration  of  gold  and  silver  as  the  circulating  medium.  A  specie  currency 
was  needed  to  relieve  the  shipping  interests.  If  a  man  were  now  to 
build  or  buy  a  ship  at  $85  per  ton,  and  if  next  year  the  country  were  to 
go  back  to  the  gold  currency,  he  would  find  his  investment  reduced  to 
$60  per  ton.  Therefore  it  was  necessary  to  get  back  to  the  gold  currency 
as  soon  as  possible,  because  the  present  condition  of  the  currency  de 
terred  men  from  going  into  that  kind  of  investment. 

Another  view  of  the  subject  was,  the  change  produced  by  substituting 
steam  for  sails  and  iron  for  wood.  They  had  undertaken  recently  in 
Boston  to  build  two  magnificent  steamers,  two  of  the  finest  vessels  in  the 
world.  But  Congress  had  virtually  provided,  by  refusing  to  grant  sub 
sidies,  that  the  United  States  should  have  no  steamers  carrying  the  mails 
across  the  ocean.  The  only  subsidies  allowed  were  to  a  few  vessels  run 
ning  to  Brazil  and  China,  not  half  the  number  that  ought  to  run  between 
China  and  California.  How  could  Americans  under  such  circumstances 
run  lines  of  steamers  in  competition  with  English  and  French  lines  which 
were  largely  subsidized1?  England  had  a  fleet  of  a  hundred  sail  of 
steamers  running  to  the  east,  to  Bombay,  Calcutta,  Japan,  and  China. 
And  how  was  this  immense  fleet  supported?  How  was  it  that  England 
had  to-day  something  like  500,000  tons  engaged  in  steam  navigation,  and 
a  navy  more  powerful  than  the  navies  of  all  the  rest  of  the  world3?  It 
was  by  her  subsidies.  She  gave  one,  two,  three  dollars  a  mile  to  steam 
ers,  and,  if  necessary,  was  prepared  to  give  four  dollars.  France  had 
put  on  a  line  to  China,  and  had  begun  to  press  the  English  line  a  little; 
but  the  English  government  had  come  forward  and  said,  "We  will  give 
you  $3  a  mile  on  condition  that  your  profits  shall  not  get  up  beyond  a  cer 
tain  sum;  but  you  shall  run  your  steamers  and  not  be  put  down  by  the 
French."  When  other  governments  pursued  the  policy  of  granting  lib 
eral  subsidies,  why  should  not  the  American  government  do  the  same  ? 
Kot  one  of  the  great  steamship  lines  could  have  paid  expenses  without 
a  subsidy,  and  the  subsidy  had  been  the  sole  basis  on  which  they  had 
run.  If  that  were  the  case,  if  they  could  not  run  without  subsidy, 
how  could  American  lines  run  without  subsidy,  and  with  all  the  duties 
imposed  upon  them?  Were  Americans  prepared  to  abandon  the  ocean? 
They  were  abandoning  it  to-day.  If  they  wished  to  win  fame  and  wealth 
on  the  ocean,  as  their  fathers  had  done,  their  steam  lines  must  be  sub 
sidized.  They  must  be  put  on  an  equality  with  foreign  lines,  and  then 
they  would  compete  with  the  rest  of  the  world. 

It  had  been  suggested  that  navigation  should  be  made  free,  and  that 
foreign  vessels  should  be  admitted  to  American  registry.  In  theory  that 
might  seem  to  do  very  well,  but  would  not  Congress  have  to  go  a  step 
further?  When  it  dealt  with  navigation  in  that  way,  would  it  not  have 
to  go  further  and  take  the  high  duties  off  manufactured  goods,  and  off 
iron  and  other  things?  If  Congress  took  the  high  duties  off  ships,  and 
kept  them  on  everything  else,  who  would  want  to  own  ships?  What 
seemed  essential  to  him  was  that  a  great  reduction  should  be  made  in 
the  cost  of  American-built  ships,  without  doing  injury  to  American 
manufactures,  and  that  a  tax  should  be  put  upon  foreign-built  vessels. 

He  had  been  in  California  the  other  day,  and  had  seen  that  there  was  a 
competition  between  the  Pacific  railroad  and  the  Pacific  mail  steamers,  but 
he  was  certain  that  if  the  steamers  running  to  Panama  could  be  diverted 
to  China,  the  diversion  of  each  of  the  til-monthly  steamers  would  be 
worth  a  million  dollars  .to  the  railway.  In  the  one  case  the  steamship 
line  was  an  opponent,  in  the  other  case  it  would  be  a  feeder.  He  thought 


NAVIGATION   INTERESTS.  99 

it  would  be  extremely  desirable  to  have  a  line  of  propellers  established 
between  San  Francisco  and  China,  and  he  understood  that  the  English 
were  thinking  of  it.  It  seemed  to  him  that"  there  was  so  much  need  of 
some  iron  screw  propellers  for  that  trade  that,  if  they  could  not  be  built 
cheaply  here,  some  of  them  should  be  let  in  from  England,  and  run  on 
American  account. 

He  had  to  say  a  word  on  another  point  in  this  connection.  If  they 
were  to  have  shipping,  the  shipping  must  have  something  to  carry.  But 
Congress,  by  its  legislation,  provided  that  the  foreign  business  should 
be  to  a  great  extent  destroyed.  He  was  rather  inclined  to  give  some 
protection  to  manufactures ;  but  he  thought  there  were  certain  limits  to 
the  protection  which  should  be  given.  When  duties  were  higher  than 
thirty  per  cent,  they  encouraged  smuggling.  He  found  that  there  was 
a  large  amount  of  smuggling  going  on  from  the  provinces,  which  op 
erated  in  weakening  and  impairing  the  force  of  the  United  States  duties. 
In  the  article  of  woolens  particularly  there  was  a  very  great  amount  of 
smuggling.  He  wished  Congress  to  take  off  the  duty  on  foreign  wool, 
and  to  have  the  wool  come  in  free,  as  it  does  in  Europe,  so  as  to  give 
American  shipping  something  to  do  in  the  way  of  carrying  wool.  He 
had  been  to  California,  and  had  learned  something  there  about  the  manu 
facture  of  wool.  The  current  price  of  a  three-quarter  pluck  wool — 
nearly  up  to  the  full-blood  grade — was  twenty-one  cents  a  pound ;  and 
he  was  told  they  could  raise  it  a  good  deal  cheaper  than  that.  A  gentle 
man,  Colonel  Halliday,  had  crossed  the  mountains  in  1854  with  a  flock 
of  twelve  hundred  sheep,  and  lost  four  hundred  on  the  way. 

Mr.  WELLS.  I  understood  that  it  was  eight  thousand,  and  that  he  had 
lost  two  thousand. 

Mr.  DERBY.  "  I  tell  the  tale  as  it  was  told  to  me"  at  the  Pioneer  Woolen 
Factory  in  San  Francisco;  but  whether  the  flock  was  eight  thousand  or 
twelve  hundred  will  not  matter  materially,  because  the  result  is  so  pro 
digious  that  either  will  answer.  That  flock  has  increased  to  sixty-four 
thousand,  and  is  yielding  $100,000  a  year  to  him,  with  wool  at  twenty- 
one  cents  a  pound.  And  yet  we  have  gentlemen  from  Ohio  and  Iowa 
saying  that  they  must  have  forty  or  fifty  cents  a  pound  on  wool,  while 
here  is  a  man  making  $100,000  a  year  out  of  what  was  originally  worth 
little  or  nothing,  by  selling  wool  at  twenty-one  cents  a  pound  in  Cali 
fornia. 

That  carries  me  to  the  story  of  La  Plata  wool.  They  have  on  those 
plains  seventy-five  million  sheep,  yielding  a  large  amount  of  wool.  In 
18G5  we  received,  principally  from  that  country,  Australia,  and  Africa, 
eighty-seven  million  pounds  of  wool.  While  we  were  receiving  this 
large  quantity  of  wool  the  government  threw  on  the  market  some  army 
clothing.  Probably  the  country  was  a  little  overstocked  with  woolens. 
Wool  fell  in  price;  an  excitement  was  got  up;  and  a  duty  equivalent  to 
thirteen  or  fourteen  cents  was  put  on  foreign  wool.  The  result  was  that 
the  importation  of  wool  was  reduced  from  eighty-seven  million  pounds 
to  twenty-three  or  twenty-four  million  pounds,  and  that  sixty  million 
pounds  were  excluded  from  the  country  by  that  duty.  I  want  to  show 
its  effect  on  shipping.  That  wool  gave  employment  to  several  hundred 
thousand  tons  of  shipping.  The  vessels  engaged  in  the  trade  carried 
back  flour,  furniture,  fish,  domestics,  and  a  great  variety  of  commodities 
from  this  country.  They  were  exchanged  for  wool,  and  the  wool  was 
brought  here  and  manufactured.  The  duty  on  wool  was  put  up;  and 
what  became  of  La  Plata?  They  sent  their  wool  to  England,  France, 
and  Belgium,  where  it  was  sold  very  cheap.  We  who  give  away  our 
land  to  the  .settlers  have  put  on  a  duty  of  fourteen  cents  a  pound  on  an 


100  NAVIGATION   INTERESTS. 

article  which  has  since  been  selling  in  Liverpool  at  ten  cents  a  pound — a 
duty  of  one  hundred  and  forty  per  cent.  The  effect  is  that,  in  La  Plata, 
they  arc  getting  out  of  the  wool  business,  and  are  raising  cattle  instead 
of  sheep.  They  have  advertised  a  great  fair,  and  have  invited  our  gov 
ernment  to  send  out  specimens  of  all  the  machines  of  Yankee  invention. 
They  are  abandoning  the  sheep  business  and  are  going  into  the  cultiva 
tion  of  wheat  and  the  raising  of  cattle.  We  are  excluding  them  from  the 
sheep  business,  and  now  they  are  going  to  take  the  cattle  business  and 
the  wheat  business  out  of  our  hands.  Instead  of  shipping  our  wheat 
from  California,  England  is  going  to  get  it  more  or  less  from  La  Plata, 
because  we  have  excluded  her  wool. 

You  are  sitting  here  on  the  question  of  ships,  but  let  me  say  we  do 
not  want  the  ships  unless  we  give  them  something  to  do.  If  you  are 
going  to  destroy  the  foreign  trade,  and  to  say  that  foreign  wool  shall 
not  be  imported,  what  occasion  have  we  for  shipping  ?  If  the  importa 
tion  of  wool  employed  three  or  four  hundred  thousand  tons  of  shipping, 
and  if  you  say  that  no  more  can  be  imported,  we  do  not  want  the  ships. 
Give  us  the  trade. 

Take  the  article  of  salt.  I  passed  the  other  day  through  the  very 
flourishing  village  of  Syracuse,  where  salt  is  made.  They  have  a  pro 
tection  of  two  hundred  per  cent,  on  salt.  After  the  Revolution  our 
ancestors  put  on  duties  of  ten  per  cent.,  thinking  that  that  was  sufficient. 
We  put  on  two  hundred  per  cent.  The  result  is  that  Syracuse  is  a  flour 
ishing  village.  They  are  said  to  have  made  $5,000,000  from  salt  since 
the  war.  But  the  salt  trade  and  the  navigation  that  should  bring  the 
salt  home  is  very  much  broken  down.  In  New  Brunswick  the  duty  on 
salt  is  three  per  cent.,  in  the  United  States  two  hundred  per  cent.  We 
compete  with  New  Brunswick  and  Nova  Scotia  in  the  fisheries.  Some 
relief  was  given  by  Congress.  It  was  provided  that  all  the  salt  which 
our  fishermen  could  buy  in  New  Brunswick  (and  no  thanks  to  Congress 
for  that,  for  our  fishermen  could  stop  at  the  Nova  Scotian  ports  and 
take  the  salt)  should  be  free  of  duty.  And  what  do  you  think  the 
Syracusans  do  ?  They  determined  that  we  should  not  have  a  salt  trade 
with  the  West  Indies.  They  come  to  Gloucester  and  say,  "We  have  two 
prices  of  salt — that  which  is  used  on  shore  and  that  which  is  used 
on  sea.  We  will  take  the  duty  off  the  price  of  that  used  at  sea." 
They  go  over  to  Canada  and  sell  salt,  duty  free,  at  a  certain  price;  but 
if  New  York  wants  to  buy  salt  it  must  pay  two  hundred  per  cent,  addi 
tional  in  order  to  get  it.  The  Syracusans  go  to  Saginaw  and  say,  a  Gen 
tlemen,  you  are  trying  to  get  salt  out  of  your  springs ;  we  will  under 
take  to  supply  you  with  what  you  want  cheaper.'7  Thus  they  monopo 
lize  the  salt  business  of  the  country  under  a  duty  of  two  hundred  per 
cent.  The  result  is  that  they  have  come  here  to  Boston,  and  stolen  one 
of  our  clergymen  and  made  him  a  bishop  in  their  country.  They  are 
showing  an  unbounded  prosperity,  as  I  understand,  on  this  basis  of  two 
hundred  per  cent,  duty  on  salt.  We  ought  to  have  a  million  tons  of  salt 
imported  over  what  we  do  import  to-day.  The  sun  makes  it  gratuitously, 
and  you  can  put  it  on  board  ship  in  the  West  Indies  for  eight  cents  a 
bushel  or  two  dollars  a  ton.  All  the  salt  that  you  want  you  can  get  at 
the  West  Indies,  or  Cadiz,  or  up  the  Mediterranean  to  Sicily  at  about  two 
dollars  per  ton,  made  by  solar  evaporation  j  while  we  put  the  duty  at  two 
hundred  per  cent.,  and  burn  up  our  forests  for  the  purpose  of  benefiting 
Syracuse,  and  deprive  our  shipping  of  its  legitimate  business. 

What  I  would  suggest  in  regard  to  shipping  is  this :  Take  off  the  du 
ties  on  ship -building  materials.  The  question  is,  can  you  afford  it?  Mr. 
Wells  told  us  a  year  or  two  ago  that  the  surplus  jevenue  was  one  hun- 


NAVIGATION   INTERESTS.  101 

dred  and  twenty  million  dollars.  Mr.  Wells  is  a  very  careful  man.  He 
always  underrates.  He  does  it  habitually.  He  holds  a  responsible  office 
and  does  not  want  to  be  deceived.  I  feel  confident,  from  looking  over 
the  same  figures,  that  our  customs  are  paying  to-day  two  hundred  mil 
lion  dollars  a  year,  and  our  internal  revenue  two  hundred  million  dollars. 
We  are  also  running  from  twenty  to  thirty  per  cent,  ahead  of  last  year 
on  our  incidental  revenue.  We  are  selling  every  week  one  or  two  mil 
lions  of  gold  at  about  thirty,  and  putting  into  the  treasury  from  this 
source  about  thirty  millions  a  year.  There  is  a  revenue  of  four  hun 
dred  and  thirty  millions.  Our  estimated  expenditures  are  two  hundred 
and  ninety  millions,  leaving  a  surplus  of  one  hundred  and  forty  millions. 
By  reducing  the  duty  on  a  few  articles,  such  as  Spanish  cigars,  spirits, 
spices,  and  wines,  you  can  actually  increase  that  surplus  up  to  one  hun 
dred  and  eighty  millions.  Just  as  by  reducing  the  tax  on  whisky  from 
two  dollars  to  fifty  cents  a  gallon  you  increased  the  revenue  from  it  from 
eight  millions  to  eighty.  So  that,  with  our  revenue  capable  of  being 
made,  by  reduction  of  duties,  equal  to  one  hundred  and  eighty  millions 
surplus,  you  can  make  very  large  reductions  in  these  foreign  duties,  and 
so  aid  shipping.  You  will  aid  shipping -more  by  reducing  the  duties  than 
in  any  other  way.  I  speak  as  one  in  favor  of  protection  incidental  to 
revenue.  I  do  not  speak  as  a  free-trader.  1  do  not  go  to  those  extremes. 
Perhaps  I  am  not  wise  in  not  going  further  than  I  do.  But  I  stand  on 
moderate  protection.  Your  protection  to-day  is  forty-eight  per  cent,  on 
the  average  on  everything  that  you  import.  How  was  it  before  the  war  ? 
Fourteen  and  a  half  per  cent,  was  the  average.  Is  Congress  aware  of 
that  great  disparity  ?  Is  Congress  aware  that  we  have  crept  up  from 
fourteen  and  a  half  per  cent,  to  forty-eight  per  cent,  duty  on  everything 
that  we  import?  Does  Congress  believe  that  forty-eight  per  cent,  is  a 
proper  stage  of  duties,  or  that  we  are  to  maintain  them  at  that  rate  ?  Is 
it  just  for  this  nation  to  do  it  ?  I  respectfully  submit  that  it  is  not  wise 
nor  just  for  this  nation  to  do  it. 

In  reference  to  the  facilities  for  smuggling  from  the  provinces  into  the 
United  States,  Mr.  Derby  related  an  incident  which  came  within  his  own 
knowledge,  of  a  merchant  tailor  in  Halifax  who  showed  him  his  order- 
book  containing  orders  for  suits  of  clothes  from  a  large  number  of  Amer 
icans,  some  of  them  wealthy  residents  of  Boston,  and  which  were  deliv 
ered  in  Boston  free  of  duty  and  at  the  same  price  as  if  they  had  been 
delivered  in  Halifax.  He  said  that  the  only  way  was  to  do  what  the 
English  and  French  and  Belgians  had  done,  that  is,  to  go  back  to  free 
trade  in  wools.  The  man  who  had  his  land  gratuitously,  or  who  could 
get  it  with  scrip  at  seventy  cents  an  acre,  certainly  did  not  need  protec 
tion  as  against  the  Frenchman  whose  land  cost  him  four  hundred  dollars 
an  acre,  or  against  the  Englishman  whose  land  cost  him  three  hundred 
dollars  an  acre.  Some  employment  must  be  given  to  American  ship 
ping,  and  if  Congress  was  going  ta  favor  the  shipping  interest,  the  duties 
on  imports  should  be  at  such  a  rate  as  that  goods  could  be  imported 
into  this  country. 

The  CHAIRMAN.  Speaking  of  the  vessels  which  sought  protection 
under  the  English  flag  during  the  rebellion,  you  say  that  it  has  been  the 
policy  of  all  nations  in  times  of  war  to  allow  their  subjects  to  put  their 
ships  under  a  neutral  flag.  Do  you  think  that  dining  our  late  war  Great 
Britain  occupied  the  position  of  a  neutral  toward  us  ? 

Mr.  DERBY.  Only  nominally.  I  do  not  think  she  was  really  a  neutral, 
but  she  was  nominally  so,  and  the  merchants  had  a  right  to  consider 
her  so. 


102  NAVIGATION   INTERESTS. 

Mr.  CALKIN.  In  regard  to  subsidies,  can  you  inform  the  committee 
how  much  money  the  English  government  is  now  paying  for  subsidies  i 

Mr.  DERBY.  The  London  Times  of  April  1,  1809,  states  that  the 
Cunard  Company  was  paid  prior  to  18G8  £178,000  a  year  for  one  weekly 
service,  and  then  £80,000  a  year,  and  all  the  postages  on  letters  from 
America.  Seventeen  lines  of  steamers  have  made  during  the  last  year 
1,322  voyages  between  England  and  America.  The  Inmaii  line  is  now 
paid  for  one  weekly  service.  Three  lines  of  British  steamships  sub 
sidized  for  the  carriage  of  the  mails,  viz.,  the  Cunard,  the  Eoyal,  and 
the  Peninsular  and  Oriental  Steamship  Companies,  employ  more  than 
200,000  tons  of  shipping  propelled  by  steam.  The  amount  paid  them 
has  ranged  from  $1  to  $3  per  mile.  In  addition  to  these  many  other  lines 
were  subsidized  from  England,  viz.,  a  line  to  Montreal,  a  line  to  the 
coast  of  Africa,  the  Inmaii  line,  a  line  to  Brazil,  a  line  to  Australia,  and 
a  line  to  the  coast  of  Chili  and  Peru.  The  last  named  has  fourteen 
steamships.  The  trade  between  Liverpool  and  the  Mediterranean,  chiefly 
conducted  by  them,  amounts  to  600,000  tons  a  year.  In  1843  the  Cunard 
line  had  four  steamers,  of  5,000  tons.  In  1805  it  had  thirty-seven  steam 
ers,  of  07,000  tons. 

Mr.  MORRELL.  I  infer  from  your  remarks  that  a  large  proportion  of 
the  seeming  decline  in  American  commerce  is  only  nominally  so,  and 
that  the  difference  consists  in  vessels  sailing  under  a  foreign  flag  but 
still  belonging  to  American  citizens  ? 

Mr.  DERBY.  That  element,  however,  is  diminishing.  As  these  ships 
perish  they  are  not  supplied,  and  when  the  owners  can  sell  them  they 
do  so.  They  are  reluctant  to  have  foreigners  hold  a  trusteeship  of  their 
property. 

Mr.  MORRELL.  At  the  present  time  the  apparent  falling  off  has  not 
been  entirely  real  ? 

Mr.  DERBY.  Not  entirely.  I  think  that  we  own  still  four  or  five  hun 
dred  thousand  tons  sailing  under  the  British  flag;  but  I  think  that  that 
tonnage  is  diminishing  at  the  rate  of  100,000  tons  a  year. 

The  CHAIRMAN.  What  is  the  average  life  of  a  wooden  ship  ? 

Mr.  DERBY.  There  is  a  difference  of  opinion  upon  that.  It  depends 
very  much  upon  the  class  of  ship.  A  good  white-oak  built  ship  will 
last  sometimes  twenty  or  thirty  years ;  but  taking  the  chances  of  life,  I 
suppose  that  twelve  or  thirteen  years  would  be  the  average  duration  of 
a  wooden  ship.  The  average  duration  of  the  wooden  ships  built  in  the 
Provinces  is  not  more  than  six  or  eight  years.  I  have  seen  a  ship  that 
was  built  by  my  grandfather,  and  which,  I  think,  was  run  after  being 
forty  or  fifty  years  old.  Ships  are  like  individuals ;  some  of  them  have 
greater  longevity  than  others. 

Mr.  HOLMAN.  Is  there  any  commercial  power  that  entirely  excludes 
from  its  registration  foreign-built  vessels  ? 

Mr.  DERBY.  I  am  not  aware  of  it. 

Mr.  HOLMAN.  What  is  the  most  general  policy  ?  Do  any  of  the  con 
tinental  powers  admit  foreign-built  vessels  to  register  except  on  the  pay 
ment  of  some  duty  ?  And  what  is  the  average  of  that  duty  ? 

Mr.  DERBY.  My  knowledge  does  not  extend  that  far.  I  know  that 
there  is  a  disposition  among  continental  nations  to  increase  their  marine. 
Their  duties  are  very  low. 

Mr.  HOLMAN.  What  would  be  the  effect  on  our  commerce  (discon 
nected  with  ship-building)  of  allowing  foreign-built  vessels  an  American 
registration  on  payment  of  a  duty  of  ten  or  fifteen  per  cent.,  and  at  the 
-same  time  excluding  them  from  the  coastwise  trade  f 


NAVIGATION   INTERESTS.  103 

Mr.  DERBY.  I  am  inclined  to  think  that  that  would  be  the  best 
policy. 

Mr.  HOLMAN.  If  Congress  should  allow  foreign-built  vessels  to  obtain 
an  American  registration  on  payment  of,  say,  ten  per  cent.,  relieve  the 
ship-building  interest  of  the  United  States  from  the  taxes  on  the  ma 
terials  entering  into  the  construction  of  ships,  and  secure  to  American 
ship-builders  the  coastwise  trade,  what  effect  would  these  three  measures, 
taken  together,  have  both  upon  commerce  and  ship-building  ? 
*  Mr.  DERBY.  If  you  allow  me  to  make  one  modification,  and  instead  of 
ten  per  cent,  duty  on  foreign  vessels,  say  $10  per  ton,  I  would  go  for  the 
measure  heartily  and  think  it  a  most  beneficial  one. 

Mr.  HOLMAN.  Would  it,  in  your  judgment,  promote  our  commercial 
interest,  and  at  the  same  time  afford  a  reasonable  protection  to  the  ship 
building  interest  ? 

Mr.  DERBY.  With  the  modification  I  have  suggested,  I  think  it  would. 
I  would  allow  ten  dollars  per  ton  on  wooden  ships,  and  from  fifteen  to 
eighteen  dollars  a  ton  on  iron  ships.  I  am  fearful  of  taking  off  the 
duties  on  the  materials.  In  the  Provinces  there  is  a  very  strong  dispo 
sition  to  join  the  United  States,  particularly  in  the  maritime  provinces ; 
but  if  you  let  in  their  vessels  free,  or  at  a  duty  of  ten  per  cent.,  they 
would  not  join  us.  They  would  stay  where  they  are.  I  would  have  the 
duty  high  enough  to  induce  them  to  come. 

The  CHAIRMAN.  Do  you  know  of  any  nation  which  puts  a  duty  on  the 
raw  materials  that  enter  into  the  construction  of  ships  f 

Mr.  DERBY.  I  do  not  recollect  any.  I  think  that  these  materials 
ought  to  come  in  free,  either  by  a  remission  of  duty  or  in  some  other 
way.  I  think  the  remission  of  duty  would  be  the  fairest  way.  I  am 
very  much  impressed  with  the  importance  of  subsidies  to  steamers  j  so 
much  so  that  I  volunteered  to  speak  before  the  Post  Office  Committee 
at  Washington  on  that  subject. 

Mr.  CALKIN.  Is  it  your  opinion  that  we  cannot  support  steamship 
lines  without  subsidies  f 

Mr.  DERBY.  I  do  not  see  how  we  can. 

The  CHAIRMAN.  I  understood  you  to  say  that  steamers  were  super 
seding  sailing-vessels,  and  that  that  was  one  of  the  causes  of  the  decline 
of  our  tonnage.  How  do  you  account  for  the  fact  that  in  the  whole  for 
eign  commerce  of  New  England,  neither  a  foreign  nor  an  American  line 
of  steamships  has  been  able  to  sustain  itself  in  competition  with  sailing- 
vessels  ?  Does  not  this  prove  that  steamers,  standing  on  the  same  foot 
ing,  cannot  compete  with  sailing-vessels  in  long  voyages,  and  in  foreign 
commerce,  unaided  by  any  subsidy  ? 

Mr.  DERBY.  I  am  inclined  to  that  opinion,  that  steamers  require  the 
aid  of  subsidies  to  compete, 

Mr.  MORRELL.  Are  not  subsidies  confined  to  vessels  that  are  required 
to  make  quick  time  9 

Mr.  DERBY.  I  understand  that  of  late  they  have  been  building  a  class 
of  vessels  at  Glasgow — cheap  vessels — that  will  run  for  twenty-four  hours 
with  one  ton  of  coal  to  the  hundred  tons,  or  ten  tons  of  coal  to  the 
thousand-ton  ships.  I  presume  that  that  class  of  vessels  running  slowly 
would  be  able  to  compete  with  sailing-vessels ;  but  I  believe  that  the 
great  increase  in  the  steam  navy  of  England  has  been  due  to  the  subsi 
dies  which  have  given  it  a  stimulus.  Congress  did  give  a  subsidy  to 
one  European  line,  the  Collins  line ;  but  the  vessels  of  that  line  were  so 
expensive  that  even  with  the  subsidy  they  could  not  get  along.  If  they 
had  followed  the  policy  of  the  Cunard  line,  with  a  liberal  subsidy  of 
Congress,  they  would  'have  been  sucessful.  One  of  the  mistakes  of 


104  NAVIGATION   INTERESTS. 

our  countrymen  is,  in  undertaking  to  strike  out  new  paths  instead  of 
following  others  which  have  already  been  discovered.  Since  the  intro 
duction  of  screw  steamers,  the  English  government  has  reduced  the 
subsidy. 

Mr.  WELLS.  But  only  a  portion  of  the  English  lines  are  subsidized. 

Mr.  DERBY.  I  believe  that  that  is  so ;  but  the  steamship  lines  have 
been  built  up  by  the  aid  of  previous  subsidies.  I  think  that  that  class  of 
screw  steamers  which  I  have  just  alluded  to  might  possibly  be  built  to 
run  slowly,  carrying  merchandise  which  would  make  money  without  a 
subsidy. 

Mr.  WELLS.  It  has  been  stated  that  not  only  in  England  but  also  in 
Germany  and  France  ships7  stores  are  taken  out  of  bond  without  pay 
ment  of  duty. 

Mr.  DERBY.  That  is  the  case  in  England.  I  know  that  their  wines 
and  supplies  of  that  kind  are  taken  out  of  bond  duty  free ;  and  with 
respect  to  coal,  1  believe  that  the  foreign  coal  was  taken  out  of  bond 
here  duty  free  by  the  Cunard  line,  under  a  certificate  that  it  is  con 
sumed  at  sea. 

The  CHAIRMAN.  Is  that  the  case  now  ? 

Mr.  DERBY.  It  was  the  case  some  years  ago. 

The  CHAIRMAN.  It  is  the  same,  I  suppose,  with  American  vessels ; 
they  would  have  the  same  advantage  as  the  foreign  vessels  ? 

Mr.  DERBY.  Yes,  sir;  I  am  told  that  in  the  matter  of  coal  the  Cunard 
line  had  ultimately  to  refund  the  duty.  They  gave  bond  to  have  the 
question  passed  upon  afterward.  I  am  told  that  they  made  a  test  case 
of  it,  and  that  the  decision  was  against  them. 

The  CHAIRMAN.  In  either  case,  whether  they  paid  the  duty  or  ob 
tained  it  free,  the  American  and  foreign  vessels  would  be  on  the  same 
footing  ? 

Mr.  DERBY.  Certainly.  The  question  has  been  asked  to-day,  whether 
ship-owners  should  not  be  favored  in  getting  their  supplies  free  of  duty, 
so  as  to  compensate  for  the  duties  on  the  ship-building  materials.  I 
should  apprehend  that  the  compensation  would  not  be  sufficient.  The 
great  expense  of  ship-owners  is  in  fuel. 

Mr.  WELLS.  Which  would  be  the  better  policy ;  to  remit  the  duties 
on  the  materials  entering  into  the  construction  of  ships,  or  to  make  an 
average  allowance  per  ton  ? 

Mr.  DERBY.  The  difficulty  that  I  see  in  allowing  a  drawback  upon 
the  materials  actually  used  would  be  that  American  ship-builders  would 
use  no  American  iron ;  they  would  use  nothing  but  foreign  materials. 

Mr.  WELLS.  So  that  in  reality  your  suggestion  is  in  favor  of  a  bounty 
to  ship-builders,  rather  than  a  remission  of  duties1? 

Mr.  DERBY.  Yes,  sir ;  an  inducement  to  build. 

Mr.  WELLS.  Would  not  the  opening  of  ship-yards  for  building  iron 
vessels  in  Massachusetts,  Maine,  and  New  York,  actually  stimulate  the 
manufacture  of  iron  materials  that  enter  into  the  construction  of  iron 
ships  ?  There  is  none  of  that  material  of  any  consequence  made  in  the 
United  States. 

Mr.  DERBY.  There  is  a  certain  amount  of  it  made,  because  we  are 
building  ships  for  the  coasting  trade. 

Mr.  WELLS.  Would  not  the  industry  in  the  manufacture  of  iron  for 
the  construction  of  ships  be  actually  increased  by  adopting  a  more  lib 
eral  policy  in  reference  to  the  use  of  foreign  materials  for  ship-building? 

Mr.  DERBY.  I  think  it  would  give  a  great  stimulus  to  the  industry  of 
the  country.  We  can  build  vessels  for  the  coastwise  trade  ten  dollars 
a  ton  cheaper,  and  we  can  carry  the  iron  and  coal  cheaper,  and  thus 


NAVIGATION   INTERESTS.  105 

stimulate  the  iron  industry.  There  is  one  suggestion  which  I  have 
omitted.  It  is  this :  If  you  can  enlarge  American  shipping  and  build  a 
half  million  tons  every  year,  as  we  did  a  few  years  ago,  you  make  an 
immense  market  for  American  products.  If  a  Hamburg  ship  does  the 
business,  or  if  an  Italian  ship  does  the  business,  they  get  most  of  their 
supplies  from  Germany  and  from  Italy.  But  if  an  American  ship  does 
the  business  its  supplies  are  got  here  almost  entirely,  and  you  thus  make 
a  great  market  for  the  produce  of  the  farm  by  reviving  the  navigation 
interest.  All  that  market  is  now  lost,  and  the  men  who  have  been  sail 
ors,  and  who  have  been  using  the  products  of  the  West,  are  now  liable 
to  become  farmers  in  the  West. 

Mr.  WELLS.  In  making  this  remission  of  duty  or  this  bounty,  should 
vessels  for  the  inland  commerce  have  the  same  benefits  as  ships  for  for 
eign  commerce  ? 

Mr.  DERBY.  That  question  is  in  my  mind.  It  is  not  so  essential  for 
vessels  in  the  coastwise  trade  as  it  is  for  vessels  in  the  foreign  trade; 
because  in  the  foreign  trade  we  meet  foreign  competitors,-  but  in  the 
domestic  trade  we  meet  only  domestic  competitors. 

Mr.  WELLS.  Do  we  not  meet  the  foreign  competitor  in  our  coastwise 
trade  as  competing  with  the  railroad  interest  owned  by  foreigners  ? 

Mr.  DERBY.  There  is  a  competition  there  with  the  railway,  unques 
tionably. 

Mr.  WELLS.  And  the  more  steamboats  we  can  build,  and  the  greater 
facilities,  and  the  more  drawbacks  we  can  give  them,  the  cheaper  we  get 
our  wheat  to  market. 

Mr.  DERBY.  Certainly,  sir.  But  I  am  so  much  of  a  railroad  man 
myself,  that  if  we  do  anything  for  steamers  I  should  like  the  same  thing 
to  be  done  for  railroads,  which  are  a  benefit  to  them.  But  I  was  look 
ing  at  the  foreign  competition  which  is  driving  us  from  the  ocean. 

Mr.  CALKIN.  I  take  it  that  this  question  resolves  itself  down  to  a 
question  of  developing  the  labor  of  the  country  generally  on  all  points  ? 

Mr.  DERBY.  Yes,  sir ;  to  a  great  extent  the  promotion  of  navigation 
benefits  the  whole  country. 

Mr.  CALKIN.  Exactly.  Your  whole  argument  has  been  that  if  we 
build  ships  we  encourage  all  the  other  interests  of  the  country? 

Mr.  DERBY.  We  do;  and  I  think  that  by  discouraging  ship-building 
we  are  building  up  a  competition  with  our  farmers  and  depressing  the 
labor  of  the  West. 

Mr.  HARRISON  LoRiNG,'iron  ship  builder,  argued  against  the  policy  of 
a  rapid  contraction  of  the  currency  and  return  to  specie  payments,  and 
submitted  citations  and  figures  from  an  English  atlas  (Tullock's)  to 
show  the  effect  in  Great  Britain  of  expansions  and  contractions  of  the 
currency — expansions  being  followed  by  general  prosperity  and  con 
tractions  by  stagnation  in  business. 

He  also  called  attention  to  the  high  rate  of  interest  paid  by  the  United 
States  government  as  being  injurious  to  business  interests.  Six  per 
cent,  was  a  rate  that  was  above  the  labor  of  the  country;  and  ho 
thought  he  was  safe  in  saying  that,  somewhat  in  proportion  as  the  rate 
of  interest  is  above  the  labor  of  the  country,  so  will  money  go  with 
increased  rapidity  from  the  hands  of  the  masses  of  the  people  to  those 
of  the  rich  and  to  the  great  cities.  At  compound  interest  money  at 
six  per  cent,  would  double  in  eleven  years ;  and  it  was  not  possible  for 
labor  to  produce  the  same  result.  He  was  inclined  to  think  that  one  of 
the  first  steps  toward  relieving  commerce  would  be  the  reduction  of 
duties  as  far  as  possible. 

Mr.  CALKIN.  You  are  an  iron-ship  builder  ? 


106  NAVIGATION   INTERESTS. 

Mr.  LORING.  Yes,  sir. 

Mr.  CALKIN.  Have  you  any  information  to  give  the  committee  as  to 
the  cost  of  building  iron  ships,  and  as  to  your  ability  to  compete  with 
foreign  builders  ? 

Mr.  LORING.  In  1857, 75S, 759, 760,  and  '61  I  could  deliver  a  ship  in 
India  or  China  at  the  same  price  as  English  ship-builders  could,  but 
without  profit,  while  the  English  ship-builder  would  have  from  five  to 
ten  per  cent,  profit.  In  1857  I  built  one  steamer  for  parties  in  Calcutta, 
and  in  1858-?59,  one  for  parties  in  China.  The  chairman  asked  Mr. 
Derby  if  steam  could  compete  successfully  with  sailing-vessels.  I  be 
lieve  Mr.  Derby  did  not  answer  that  question.  I  will  say  that  steamers 
are  competing  successfully  with  sailing-vessels  without  a  subsidy.  In 
fact,  most  of  the  business  with  the  principal  cities  on  the  coast  is  done 
by  steamers. 

Mr.  CALKIN.  They  are  really  running  off  sailing-vessels'? 

Mr.  LORING.  Yes ;  from  the  trade  between  Boston,  New  York,  Balti 
more,  Norfolk,  Charleston,  New  Orleans,  and  Savannah.  That  is  a 
question  which  will  take  care  of  itself.  American  steamers  can  compete 
successfully  with  American  sailing-vessels  in  our  waters. 

Mr.  HOLMAN.  What,  in  your  judgment,  can  the  government  do  to 
revive  the  ship-building  interests  of  the  country  I 

Mr.  LORING.  I  did  not  come  .here  prepared  to  take  up  the  different 
points  and  discuss  them,  and  whatever  I  say  will  be  said  in  a  desultory 
manner.  We  all  know  that  no  nation  can  become  wealthy  on  manu 
factures  or  on  agriculture  or  on  commerce  alone,  and  that  nations,  to 
increase  in  wealth,  must  encourage  two  or  more  of  those  interests.  My 
idea  is,  in  relation  to  the  whole  business  of  the  country,  that  we  must 
aim  to  furnish  the  labor  of  the  country  with  everything  that  it  con 
sumes,  outside  and  inside,  at  the  lowest  possible  cost,  with  a  view  of 
reducing  the  cost  to  commerce.  An  additional  cost  of  one  per  cent,  will 
prevent  millions  of  exports. 

Mr.  HOLMAN.  A  nation  may  promote  its  commerce  at  the  expense  of 
the  manufacturing  industry  engaged  in  the  construction  of  ships.  That 
can  be  done,  of  course,  by  allowing  the  purchase  and  registry  of  foreign- 
built  vessels.  But,  looking  at  the  question  in  connection  with  ship 
building  alone,  and  as  only  a  mere  agent  of  commerce,  can  the  govern 
ment  do  anything  to  promote  the  interests  of  the  ship-builders  except 
by  relieving  ship-building  materials  from,  the  payment  of  internal  and 
external  duties  ? 

Mr.  LORING.  Of  course  the  best  way  would  be  a  reduction  of  duties 
on  imports ;  but  no  one  expects  that  we  are  coming  to  free  trade. 

Mr.  HOLMAN.  Take  only  those  materials  that  enter  into  the  construc 
tion  of  ships  in  which  foreign  labor  comes  in  competition  with  our  own. 

Mr.  LORING.  That,  as  Mr.  Derby  remarked,  would  interfere  with 
American  manufactures.  It  seems"  that  the  only  way  would  be  the 
allowance  of  a  drawback. 

Mr.  WELLS.  What  drawback  would  you  suggest  for  the  purpose  of 
encouraging  the  building  of  iron  ships  here  ? 

Mr.  LORING.  No  more  than  the  amount  paid  in  duties. 

Mr.  WELLS.  How  much  is  that  per  ton  ? 

Mr.  LORING.  I  have  not  gone  into  a  computation.  I  presume  that 
ten  dollars  per  ton  on  wooden  vessels  is  about  correct.  Wooden  ships 
cost  about  eighty  dollars  a  ton,  and  iron  ships  one  hundred  and  twenty 
or  one  hundred  and  thirty  dollars.  To  encourage  iron-ship  building  of 
course  a  drawback  should  be  allowed  in  proportion  to  the  extra  cost. 


NAVIGATION   INTERESTS.  107 

Mr.  WELLS.  Would  a  drawback  of  twenty  dollars  per  ton  be  suf 
ficient? 

Mr.  LORING.  It  is  easily  computed.  I  do  not  know  what  the  cost  of 
iron  ships  in  England  is.  It  is  some  three  years  since  we  have  given 
up  all  idea  of  building.  I  have  all  the  facilities  for  building.  I  am 
keeping  up  an  establishment  and  organization  in  hopes  of  having  some 
relief. 

Mr.  WELLS.  It  was  stated  before  the  committee  in  New  York  that 
twelve  dollars  per  ton  would  be  sufficient  to  justify  the  building  of  iron 
vessels  in  this  country. 

Mr.  LORING.  I  think  it  was  set  too  low.  That  would  be  discriminat 
ing  in  favor  of  wooden  vessels.  If  ten  dollars  per  ton  be  allowed  for  a 
wooden  ship,  the  amount  for  an  iron  ship  should  be  in  the  proportion 
to  the  cost,  which  is  one  hundred  and  twenty-five  dollars  per  ton  to 
eighty  dollars  for  a  wooden  vessel. 

Mr.  WELLS.  It  was  remarked  there  that  a  wooden  ship  could  be  built 
in  England  at  from  fifty-five  to  sixty  dollars,  and  here  at  about  seventy 
dollars,  and  that  an  iron  ship  cost  in  England  about  one  hundred  and 
twelve  dollars  a  ton,  and  here  from  one  hundred  and  twenty  to  one 
hundred  and  twenty-five  dollars — the  difference  being  from  ten  to  fifteen 
dollars. 

Mr.  LORING.  If  these  are  the  facts,  of  course  an  allowance  of  twelve 
dollars  per  ton  would  be  sufficient. 

The  CHAIRMAN.  In  your  opinion,  as  an  experienced  iron-ship  builder, 
if  the  duties  on  iron  were  remitted,  could  American  ship-builders  then 
compete  with  foreign  ship-builders  \ 

Mr.  LORING.  There  is  no  question  as  to  that ;  we  have  one  great  ad 
vantage  in  this — that  an  American  ship  of  the  same  weight  of  metal 
would  be  very  much  stronger  than  an  English  vessel,  and  would  havo  a 
better  reputation  all  over  the  world. 

The  committee  here  took  a  recess  for  dinner. 

AFTERNOON  SESSION. 

Mr.  ANDREW  T.  HALL,  of  Boston,  ship-owner,  said  that  there  could  be 
no  question  as  to  the  very  positive  decline  in  the  shipping  interests  of 
New  England.  This  had  always  been  a  great  point  for  building  ships. 
There  was  no  time  within  the  past  fifteen  years  that  ships  on  the  stocks 
could  not  be  counted  by  dozens  in  and  around  Boston.  Now  there  were 
none  on  the  stocks.  Iron  was  so  very  heavily  taxed  that,  without  some 
thing  in  the  nature  of  a  drawback,  American  ship-builders  could  not 
compete  with  English  ship-builders.  Iron  ships  had  been  recently  in 
troduced  in  England  for  commercial  purposes,  and  would  enter  largely 
into  the  carrying  trade  of  the  world.  Americans  could  not  begin  to  com 
pete  with  the  English  in  iron  ship  building.  As  to  wooden  ships,  they 
were  still  trying  to  keep  the  business  alive.  He  had,  himself,  built  a 
large  wooden  ship  within  the  last  few  weeks,  but  there  was  very  little 
opportunity  for  profit  in  the  business.  What  ship-builders  wanted,  he 
thought,  was  a  drawback  of  duty  on  the  iron  used  in  the  manufacture 
of  ships.  There  was  a  good  deal  of  iron  rigging  used  now  in  ships, 
which  had  not  been  the  case  heretofore,  and  a  drawback  of  duty  upon 
it  would  be  a  material  help. 

Mr.  CALKIN.  Do  you  make  a  specialty  of  the  iron,  or  dp  you  require 
a  drawback  on  all  the  articles  entering  into  the  construction  of  a  ship? 

Mr.  HALL.  Iron  is  the  principal  object,  because  the  wood  we  have 
ourselves,  and  the  copper  also. 


108  NAVIGATION   INTERESTS. 

Mr.  CALKIN.  Do  you  speak  of  iron  ships  particularly  ? 

Mr.  HALL.  I  am  speaking  of  iron  ships.  There  is  not  so  much  differ 
ence  in  the  foreign  and  American  value  of  copper  as  there  is  in  that  of 
iron.  We  are  producing  such  a  large  quantity  of  copper  that  the  price 
has  been  reduced  somewhat. 

Mr.  BOLIVIAN.  To  what  extent,  if  it  should  be  done  at  all,  do  you  think 
this  government  should  adopt  a  more  liberal  policy  than  its  present  one 
with  reference  to  the  admission  of  foreign-built  vessels  to  American 
registry^? 

Mr.  JUALL.  I  should  think  that  that  would  be  the  means  of  driving 
every  ship  mechanic  out  of  the  country. 

Mr.  HOLMAN.  What  effect  would  it  have  on  the  commerce  of  the 
country  alone,  apart  from  the  ship-building  interest? 

Mr.  HALL.  We  should  have  no  commerce  but  in  foreign-built  ships. 

Mr.  HOLMAN.  Suppose  that  all  articles  entering  into  the  construction 
of  ships  were  relieved  from  taxation,  that  the  coastwise  trade  was  re 
served  exclusively  to  American-built  vessels,  and  that  foreign-built  ves 
sels  were  admitted  to  American  registry  on  the  payment  of  a  small  duty, 
say  ten  or  fifteen  per  cent,  on  the  value,  what  effect  would  these  three 
measures,  taken  together,  have  on  our  commerce  as  well  as  on  our  ship 
building  ? 

Mr.  HALL.  I  have  not  thought  of  it  in  the  view  that  you  present  it. 
I  should  suppose,  however,  that  any  mode  which  would  introduce  for 
eign-built  ships  into  our  mercantile  marine  would  be  adverse  to  Ameri 
can  interests. 

Mr.  HOLMAN.  Our  policy,  however,  up  to  the  present  time,  has  been 
more  restrictive  than  that  of  any  other  commercial  nation  ? 

Mr.  HALL.  Yes,  sir.  We  have  a  reputation  in  New  England  of  build 
ing  good  ships — ships  that  last.  The  reputation  of  the  Provinces  in 
that  respect  is  far  inferior.  Their  ships  will  rarely  last  over  four  or  five 
years,  whereas  New  England  ships  frequently  last  from  fifteen  to  twenty- 
five  years. 

Mr.  HOLMAN.  If  the  materials  used  in  the  construction  of  wooden 
vessels  were  relieved  from  taxation,  how  far  do  you  think  that  would 
enable  the  American  ship-builder  to  compete  with  the  foreign  ship 
builder? 

Mr.  HALL.  I  think  it  would  enable  him  to  compete  entirely. 

Mr.  HOLMAN.  And  as  to  iron  vessels  ? 

Mr.  HALL.  As  to  iron  vessels  also. 

Mr.  HOLMAN.  As  successfully? 

Mr.  HALL.  It  would  take  us  some  time  to  compete  with  England  in 
iron  vessels.'  We  would  have  to  get  up  large  establishments  like  theirs. 
There  are  establishments  in  England  where  they  are  building  fourteen 
or  fifteen  iron  ships  at  a  time.  We  could  hardly  expect  to  go  into  the 
business  so  extensively  at  present,  but  we  would  arrive  at  it  in  course 
of  time. 

Mr.  HOLMAN.  W^hat  probability  is  there,  in  the  immediate  future,  of 
iron  vessels  superseding  wooden  ones? 

'  Mr.  HALL.  Judging  from  what  they  have  done  in  England,  I  should 
think  that  half  our  ships  for  the  foreign  trade  would  be  iron  ships. 
There  are  objections  to  iron  ships  which  do  not  apply  to  wooden  ships — 
as,  for  instance,  if  an  iron  ship  gets  on  a  rock  she  is  gone,  whereas  a 
wooden  one,  although  injured,  may  be  got  off.  But,  keeping  them  off 
the  rocks,  the  iron  ship  lasts  much  longer  than  the  wooden  one.  In 
England  they  class  iron  ships  for  insurance  at  twenty  years.  At  the  end 
of  that  time  she  is  examined  and  is  classed  for  twenty  years  more,  so 


NAVIGATION    INTERESTS.  109 

that  they  run  on  a  low  rate  of  insurance  for  forty  years.  Then  they 
require  no  calking.  They  require,  once  a  year,  to  go  into  dock  to  be 
cleaned.  And  they  run  at  much  less  expense  than  wooden  vessels.  I 
cannot  say  what  the  difference  in  the  rates  of  insurance  between  an  iron 
and  a  wooden  vessel  is.  The  difference  is  in  favor  of  the  iron  vessel. 

Mr.  CALKIN.  Is  there  any  difference  in  the  insurance  here? 

Mr.  HALL.  I  do  not  know. 

Mr.  CALKIN.  You  spoke  of  their  having  advantages  in  England  over 
us  in  building  iron  ships.  Is  their  machinery  for  constructing  iron  ships 
superior  to  ours? 

Mr.  HALL.  They  have  a  greater  magnitude  of  machinery.  They  have 
larger  establishments.  We  could  come  to  it  here  if  we  had  a  demand 
for  the  ships.  There  is  an  immense  capital  employed  in  the  business 
there,  which  in  this  country  we  are  hardly  able  to  furnish.  Mr.  Laird's 
concern,  opposite  Liverpool,  is  almost  a  town.  All  along  the  Clyde, 
in  Glasgow,  there  are  immense  establishments.  Where  we  commence 
with  dollars  they  do  with  pounds. 

The  CHAIRMAN.  What  preference  do  iron  ships  have  over  wooden 
ones  in  freight? 

Mr.  HALL.  They  have  no  advantage  in  carrying  except  that  they  can 
be  sailed  cheaper. 

The  CHAIRMAN.  Do  iron  vessels  command  higher  rates  of  freight  than 
wooden  vessels? 

Mr.  HALL.  I  should  think  not.  I  should  think  that,  if  anything,  the 
reverse  would  be  the  case.  I  think  that  wooden  ships  would  have  the 
preference  for  our  East  India  voyages.  There  are  some  cargoes,  salt  for 
instance,  that  cannot  be  brought  as  well  in  iron  as  in  wooden  ships. 

The  CHAIRMAN.  Do  you  think  that  the  cargo  is  generally  carried  as 
well  in  wooden  as  in  iron  ships  ? 

t  Mr.  HALL.  I  should  think  so.  I  should  give  the  wrooden  ships  the 
preference. 

Mr.  HOLMAN.  Can  you  suggest  any  other  means  by  which  the  Ameri 
can  shipping  interest  can  be  improved  than  what  you  have  mentioned — 
the  abatement  of  the  duty  or  internal  and  external  tax  on  the  materials 
used? 

Mr.  HALL.  I  know  of  no  other  advantage  that  we  should  have  the 
right  to  claim.  I  do  not  think  that  the  ship-builders  of  New  England 
would  call  on  the  government  for  any  other  aid. 

Mr.  HOLMAN.  That  would  be  more  practicable,  you  think,  than  boun 
ties? 

Mr.  HALL.  Yes,  sir.  I  am  not  in  favor  of  any  bounties  for  American 
ships.  We  want  to  be  allowed  a  chance  of  competing  with  foreign 
ship-builders  by  having  the  materials  that  enter  into  the  construction 
of  ships  free  of  duty.  It  would  be  very  beneficial  to  the  ship-owner, 
and  would  increase  the  production  of  our  own  iron  founderies. 

Mr.  HOLMAN.  Would  you  regard  it  as  consistent  with  the  interests  of 
other  branches  of  industry  to  encourage  the  production  of  iron  to  a 
greater  extent  than  at  present,  and  at  the  same  time  to  relieve  ship 
builders  from  the  duty  imposed  on  that  article  ? 

Mr.  HALL.  I  am  not  prepared  to  advocate  that.  I  only  regret,  as  an 
American,  that  we  are  so  dependent  on  abroad  for  the  immense  supply 
of  iron  that  we  should  furnish  ourselves.  It  is  for  Congress  to  suggest 
a  remedy. 

Mr.  CALKIN.  Do  you  think  that  the  iron  interest  is  protected  suf 
ficiently  to  warrant  the  construction  of  other  founderies? 

Mr.  HALL.  I  do  not  know  enough  of  the  trade  to  answer  the  question. 


110  NAVIGATION   INTERESTS. 

Practically  speaking,  it  does  not  appear  to  be,  judging  by  the  enormous 
quantities  landed  on  the  Constitution  dock  here  from  Liverpool.  That 
is  all  that  I  judge  by. 

The  CHAIRMAN.  To  what  extent  would  allowing  vessels  to  take  ships7 
stores  in  bond,  as  is  done  in  England,  relieve  the  shipping  interest? 

Mr.  HALL.  I  think  it  would  be  proper  to  allow  ships  going  on  for 
eign  voyages  to  take  goods  in  original  packages  free  of  duty. 

The  CHAIRMAN.  How  much  of  an  item  would  that  be  ?  Would  it  be 
any  measure  of  relief  to  the  ship-owner  ? 

Mr.  HALL.  Not  to  a  very  great  extent,  except  in  packet-ships,  where 
they  carry  a  large  number  of  passengers.  There  it  would  be  quite  a 
relief.  It  would  be  a  very  great  advantage  to  the  steamship  lines. 
You  can  get  a  bottle  of  champagne  on  the  English  steamers  cheaper 
than  you  can  get  it  in  Liverpool,  although  they  put  on  large  profits  on 
board  ship.  It  might  lead  to  abuse ;  but  I  think  that  where  goods  can 
be  taken  out  of  bond  in  original  packages — bags  of  coffee,  barrels  of 
sugar,  &c. — it  would  be  a  very  important  relief  to  the  shipping  interest 
to  allow  it  to  be  done.  I  regret  very  much  to  see  mooted  the  subject  of 
admitting  foreign  ships  to  registry  in  this  country.  I  think  that  it 
would  be,  if  anything,  more  destructive  than  the  high  duty  on  ship 
building  materials. 

The  CHAIRMAN.  Do  you  think  that  the  admitting  foreign  ships  to 
American  registry  would  have  a  tendency  gradually  to  transfer  the 
shipping  interests  to  the  other  side  of  the  water,  and  make  our  ships 
largely  foreign  and  only  nominally  American? 

Mr.  HALL.  I  think  it  would.  I  think  it  would  be  a  death-blow  to 
ship-building  in  this  country. 

The  CHAIRMAN.  And  that  the  ownership,  as  well  as  the  building, 
would  go  to  the  other  side  ? 

Mr.  HALL.  In  a  great  measure. 

Mr.  HOLMAN.  No  nation,  I  suppose,  allows  a  foreigner  to  hold  the 
title  to  a  ship  registered  there? 

Mr.  HALL.  I  think  not. 

Mr.  HOLMAN.  So  that,  if  the  American  government  adopt  a  more 
liberal  policy,  the  title  would  have  to  be  in  an  American  citizen  ? 

Mr.  HALL.  Yes.  During  the  war  many  of  our  citizens  put  their  ships 
under  the  English  flag,  put  in  captains,  and  took  mortgages  on  the 
ships.  I  was  told  in  England  that  those  mortgages  were  of  no  legal 
effect,  as  being  in  violation  of  the  law. 

The  CHAIRMAN.  Do  you  not  understand  that  there  are  a  great  many 
Americans  owning  ships  that  do  sail  under  a  foreign  flag? 

Mr.  HALL.  I  do  not  think  it  is  so  to  a  great  extent.  I  have  no  means, 
however,  of  knowing. 

Mr.  HOLMAN.  And,  on  the  other  hand,  I  suppose  there  are  foreign 
capitalists  interested  in  our  vessels  sailing  under  an  American  register  ? 

Mr.  HALL.  Unquestionably,  to  some  extent.  All  the  lines  of  steam 
ships  to  this  country  are  owned  by  foreigners.  I  take  it  that  the 
amount  owned  by  Americans  in  those  ships  is  a  mere  bagatelle,  if  any 
at  all. 

Mr.  HOLMAN.  Is  it  your  opinion  that  the  commercial  interests  of  the 
country  are  promoted  by  adhering  to  our  present  policy  in  regard  to  the 
nationalizing  of  foreign  bottoms  ? 

Mr.  HALL.  Decidedly  so. 

Mr.  HOLMAN.  You  think  that  it  would  promote  the  permanent  com 
mercial  interest  of  the  country  to  adhere  to  that  policy  ? 

Mr.  HALL.  I  do. 


NAVIGATION   INTERESTS.  Ill 

Mr.  HOLMAN.  Yet  it  is  not  the  policy  of  any  other  commercial  power  ? 

Mr.  HALL.  No,  sir. 

The  CHAIRMAN.  Do  you  know  how  long  Great  Britain  adhered  to  the 
policy  of  excluding  foreign  ships  from  English  registry  I 

Mr.  HALL.  ]STo,  sir,  I  do  not. 

Mr.  HOLMAN.  Has  not  the  policy  of  Great  Britain  rather  been  to 
increase  and  enlarge  her  carrying  trade  than  to  promote  specially  ship 
building  ;  and  has  not  the  ship-building  interest  been  promoted  by  her 
more  liberal  commercial  policy  ? 

Mr.  HALL.  I  have  not  seen  any  evidence  of  it.  I  judge  that  the  com 
mercial  activity  of  the  Euglisb  has  arisen  solely  from  their  having  advan 
tages  over  us  in  building  iron  ships.  They  certainly  have  not  increased 
their  wooden  ships.  It  is  the  iron  marine  that  has  been  affected  most. 
That  has  been  increased  many  hundred  thousand  tons. 

Mr.  HOLMAN.  Up  to  I860  we  had  considerable  advantage  over  Great 
Britain  in  the  construction  of  wooden  vessels  ? 

Mr.  HALL.  I  think  we  had.  American  ships  had  always  the  prefer 
ence  all  over  the  world  for  freight.  There  was  no  port  where  English 
and  American  vessels  were  together  that  the  American  vessels  had  not 
the  preference.  There  was  some  difference  in  the  China  trade,  for  which 
their  ships  were  built  with  a  great  deal  of  care  and  elegance. 

Mr.  CALKIN.  It  has  been  advocated  here  this  morning  that  those  ships 
which  were  once  under  the  American  flag,  and  that  went  under  the 
British  flag,  should  be  allowed  to  come  back.  What  do  you  think? 

Mr.  HALL.  I  should  hope  that  it  will  never  be  done.  An  American 
who  put  his  vessel  under  the  English  flag  should  be  let  keep  her  there. 
I  have  some  national  feeling  about  it. 

The  CHAIRMAN.  How  many  ships  did  you  own  during  the  war  ? 

Mr.  HALL.  About  six. 

The  CHAIRMAN.  Did  you  sail  them  under  the  American  flag  under  all 
the  disadvantages  ? 

Mr.  HALL.  Entirely.  I  had  one  ship  which  was  unfortunately  put 
under  the  English  flag  without  my  knowledge.  I  owned  half  of  her. 
She  lay  at  Hong-Kong  four  months  and  could  get  no  freight.  We  sent 
out  a  power  of  attorney  to  sell  her.  The  captain  put  her  under  the 
English  flag,  brought  her  to  Australia,  and  there  sold  her.  I  am  too 
much  of  an  American  to  want  to  have  a  ship  of  mine  sailed  under  the 
English  flag. 

The  CHAIRMAN.  You  sailed  your  ships  under  great  disadvantages  in 
keeping  them  under  the  American  flag  ?  Those  who  put  their  ships 
under  the  English  flag  had  a  great  advantage  over  you  in  insurance  and 
rates  of  freight  f 

Mr.  HALL.  Decidedly.  I  had  to  pay  double  insurance  all  through 
the  war,  which  I  could  have  avoided  by  putting  my  vessels  under  the 
English  flag  as  others  did  theirs. 

Mr.  MORRELL.  Do  you  not  consider  the  present  depressed  condition 
of  American  commerce  largely  due  to  the  unfriendly  action  of  England 
during  the  war,  in  permitting  the  departure  from  her  ports  of  such  ships 
as  the  Alabama  ? 

Mr.  HALL.  It  had  an  influence,  but  to  what  extent  I  am  not  prepared 
to  say. 

The  CHAIRMAN.  I  understand  you  to  say  that  if  the  materials  entering 
into  the  construction  of  ships  were  relieved  from  duty  you  could  compete 
successfully  with  the  English  ship-owner  in  the  foreign  carrying  trade. 

Mr.  HALL.  I  believe  entirely  so.  I  believe  that  we  build  better  ships, 


112  NAVIGATION   INTERESTS. 

more  convenient  and  sightly  ships,  than  the  English  do,  and  I  believe 
that  we  could  have  a  large  share  in  the  carrying  trade  of  the  world. 

The  CHAIRMAN.  You  have  to  pay  higher  rates  of  wages,  I  presume, 
to  officers  and  crew  than  the  English  do  ? 

Mr.  HALL.  I  should  think  that  our  officers  are  better  paid;  but  I 
think  we  sail  our  ships  quite  as  well  as  the  English  do,  and  with  as 
little  expense. 

The  CHAIRMAN.  You  think  that,  on  the  whole,  you  sail  them  as  econom 
ically  as  they  do  ? 

Mr.  HALL.  I  do. 

The  CHAIRMAN.  In  sailing  them  with  a  less  number  of  men  1 

Mr.  HALL.  No,  I  think  there  is  better  care  taken  of  the  ships.  I  think 
that  American  ship-captains  are  men  of  a  higher  grade  than  English 
ship-captains — that  they  are  men  of  more  understanding  and  more 
mind. 

The  CHAIRMAN.  You  think  that  the  greater  efficiency  of  American 
officers  and  crews  overcomes  the  difference  in  the  rates  of  wages  that 
you  have  to  pay  1 

Mr.  HALL.  I  do. 

The  CHAIRMAN.  So  that,  on  the  whole,  you  can  compete  with  the 
Eoglish  in  sailing  your  ships'? 

Mr.  HALL.  I  think  that  our  intelligence  is  such  that  we  can  manage 
our  ships  to  better  advantage  than  the  English  do.  Of  course  there  are 
exceptions ;  but  it  is  a  well-known  fact  that  the  captains  of  American 
ships  are  altogether  a  grade  higher  than  the  captains  even  of  English 
ships.  Many  of  our  American  captains  are  part  owners  of  the  vessels. 
The  crews  are  supplied  with  better  provisions  than  in  foreign  ships. 

Mr.  CALKIN.  The  ship-owners  of  New  York  complain  on  account  of 
the  assessment  or  tax  put  upon  them  by  the  State  authorities  of  New 
York,  as  being  quite  a  detriment  to  the  shipping  interest.  How  does 
that  affect  it  here  in  Massachusetts?  Is  there  a  tax  here  on  the  shipping 
interest'? 

Mr.  HALL.  Individual  taxation.  If  a  man  owns  a  ship  he  pays  a  tax 
on  it  as  on  other  property ;  but  there  is  no  special  tax  on  ships.  Every 
man  is  assessed  according  to  his  property,  whether  it  be  in  ships  or 
anything  else. 

Mr.  MoRRELL.  Is  not  that  species  of  property  taxed  abroad  as  other 
property  is  taxed ?  Would  a  shipowner  in  England  be  exempt  from 
paying  the  same  rate  on  ships  as  he  pays  on  real  estate  ? 

Mr.  HALL.  I  do  not  know  how  that  is. 

Mr.  HOLMAN.  Is  not  the  decline  in  our  ship-building  interest  partly 
attributable  to  the  fact  that  there  are  so  many  other  more  profitable 
modes  of  investing  money  in  this  country  ? 

Mr.  HALL.  I  do  not  think  that  that  enters  into  the  question  at  all. 

Mr.  CALKIN.  In  case  the  government  relieves  the  ship-building  inter 
est  and  enables  American  ship-builders  to  compete  with  foreigners,  do 
you  think  that  the  merchants  and  capitalists  of  Boston  will  put  their 
money  in  ships  again,  and  go  on  and  build  as  usual? 

Mr.  HALL.  They  will,  the  moment  they  see  that  they  can  get  a  return 
for  their  money.  Show  them  a  probability  of  success,  and  there  will  be 
capital  enough  invested  in  the  business. 

Mr.  HOLMAN.  Can  a  capitalist  in  this  country  afford  to  invest  money 
in  ship-building  unless  he  has  a  profit  of  eight  or  nine  per  cent.? 

Mr.  HALL.  If  he  is  sure  of  his  eight  or  nine  per  cent,  he  will  go  in ; 
but  as  a  general  thing  shipping  pays  better  than  that. 


+  NAVIGATION   INTERESTS.  113 

Mr.  CALKIN.  Ought  it  not  certainly  to  pay  ten  per  cent.,  to  make 
allowance  for  the  deterioration  of  shipping? 

Mri  HALL.  Yes,  sir  j  it  must  be  a  very  badly  managed  ship  that  does 
not  pay  it. 

Mr.  HOLMAN.  Yet  there  is  a  material  difference  between  ship-owning 
and  ship-building — the  one  is  merely  an  agency  of  commerce,  while  the 
other  is  but  an  article  of  manufacture. 

Mr.  HALL.  There  is  a  difference — to  what  extent  I  do  not  know.  I  am 
^iot  able  to  say  what  the  profits  of  ship-building  are,  but  I  know  that 
ship-builders  are  men  who  acquire  a  handsome  competency  in  course  of 
time.  You  will  find  that  the  ship-builders  in  Maine  are  all  more  or  less 
interested  in  the  ships  that  they  build.  It  is  so  in  London  also. 

Mr.  HOLMAN.  Do  you  think  that  it  is  the  policy  of  the  government 
rather  to  protect  the  interests  of  ship-building  than  to  look  to  the  pro 
motion  of  commerce  at  the  expense  of  the  ship-building  interest  ? 

Mr.  HALL.  I  do  not  see  how  you  can  separate  them. 

Mr.  HOLMAN.  The  United  States  might  be  a  very  powerful  commer 
cial  nation  and  yet  its  vessels  might  be  built  elsewhere,  as  is  the  case 
with  some  continental  nations. 

Mr.  HALL.  I  have  not  thought  of  that  subject,  but  my  impression  is 
that  the  two  interests  are  so  connected  that  you  can  hardly  separate 
them. 

The  CHAIRMAN.  Speaking  of  the  profits  of  ship-building,  so  far  as 
your  knowledge  and  observation  extend,  have  not  ship-builders,  prior 
to  the  war,  been  as  successful  in  proportion  to  the  amount  of  capital 
employed  as  any  other  class  of  manufacturers? 

Mr.  HALL.  They  appear  to  me  to  have  done  as  well.  Now  that  their 
yards  are  idle  they  are  living,  of  course,  on  what  they  made  before. 

The  CHAIRMAN.  I  understand  you  to  give  it  as  your  opinion  that  it 
is  necessary  to  revive  the  ship-building  interest  in  order  to  revive  the 
ship-owning  interest,  and  that  the  building  of  our  ships  abroad  would 
carry  the  ownership  and  business  abroad  ? 

Mr.  HALL.  It  would  have  that  tendency.  You  revive  our  commercial 
interest  by  creating  ships.  We  do  a  large  carrying  trade  all  over  the 
world.  We  have  three  or  four  ships  in  the  guano  trade.  That  trade 
employs  two  or  three  hundred  American  ships.  I  would  venture  to  say 
that  more  than  half  of  that  guano  trade  has  been  done  by  American 
ships.  . 

The  CHAIRMAN.  Do  the  ships  that  are  in  that  trade  go  back  in  bal 
last! 

Mr.  HALL.  No,  sir ;  after  landing  their  cargo  of  guano  at  a  port  in 
Ireland,  England,  or  Scotland,  or  at  Antwerp  or  Rotterdam,  they  gen 
erally  go  to  Cardiff,  where  they  take  a  load  of  coal,  which  they  carry  to 
Rio  Janeiro  or  some  other  South  American  port,  and  then  go  to  Peru 
for  the  guano.  They  generally  get  enough  from  the  cargo  of  coal  to 
pay  their  expenses  round  to  where  they  get  the  guano. 

The  CHAIRMAN.  Is  there  much  of  that  guano  trade  done  with  the 
United  States  now? 

Mr.  HALL.  Not  so  much  as  formerly.  I  have  not  noticed  any  of  it 
coming  this  way  of  late  years. 

Mr.  CHAIRMAN.  Before  the  war  it  was  carried  principally  to  the  south 
ern  ports ! 

Mr.  HALL.  Yes;  and  a  good  deal  of  it  went  to  New  York  at  one  time. 

Mr.  HOLMAN.  There  is,  then,  an  actual  profit  resulting  to  American 
citizens  in  a  commerce  that  lias  no  direct  relation  to  the  United  States. 
Now,  would  you  not  consider  it  a  wise  measure  of  national  policy,  if 

8NI 


114  NAVIGATION    INTERESTS. 

both  the  ship-building  and  the  commercial  interests  cannot  be  revived 
together,  to  promote  the  commercial  interests  of  the  country  without 
reference  to  the  kindred  question  of  ship-building;  and  can  that  be  done 
by  adopting  a  more  liberal  policy  with  reference  to  the  registry  of  foreign- 
built  vessels  in  the  United  States  ? 

Mr,  HALL.  I  think  the  two  are  so  combined  that  you  can  hardly  sepa 
rate  them.  If  you  want  to  revive  the  commercial  interests  of  the  coun 
try  you  must  do  it  by  creating  ships. 

Mr.  HOLMAN.  We  have  a  separate  and  peculiar  industry  connected 
with  commerce  and  disconnected  from  ship-building? 

Mr.  HALL.  Yes,  sir. 

Mr.  HOLMAN.  And  we  have  a  peculiar  industry  connected  with  ship 
building  and  not  connected  with  commerce? 

Mr.  HALL.  Exactly. 

Mr.  HOLMAN.  Now  if  ship-building  cannot  be  revived — if,  from  the 
nature  of  the  impediments  thrown  in  its  way  by  the  national  debt,  by 
the  opportunities  for  making  more  profitable  investments  and  other 
causes,  it  cannot  be  revived — would  it  not  be  the  policy  of  the  United 
States  (supposed  to  have  peculiar  advantages  as  a  commercial  power) 
to  adopt  a  more  liberal  policy  with  reference  to  nationalizing  foreign- 
built  vessels? 

Mr.  HALL.  No,  sir.  I  should  think  that  we  were  throwing  all  the 
advantages  to  the  foreigners  which  should  be  retained  to  our  own  citi 
zens.  The  commerce  of  the  country  and  the  ships  of  the  country  are 
so  identified  that  you  can  hardly  separate  them.  It  is  only  a  small  pro 
portion  of  our  ships  that  are  always  abroad. 

Mr.  WELLS.  If  there  is  nothing  done  to  relieve  the  ship-building 
industry  here,  and  if  foreign-built  ships  be  allowed  to  come  under  the 
American  flag,  how  long  will  it  be  before  there  will  be  no  American 
vessel  in  the  foreign  carrying  trade? 

Mr.  HALL.  It  would  not  be  many  years  before  the  foreigners  would 
monopolize  the  whole  of  it. 

Mr.  CALKIN.  Outside  of  the  point  of  view  of  national  pride,  would  it 
have  any  particular  effect  on  the  commerce  of  the  country  if  those  ves 
sels  that  struck  their  own  colors  and  hoisted  the  English  colors  were 
admitted  back  ? 

Mr.  HALL.  It  would  deprive  us  of  the  building  of  just  so  many  ships. 

The  CHAIRMAN.  Are  there  many  of  those  ships  in  existence  at  the 
present  time  ? 

Mr.  HALL.  There  are  probably  a  good  many  of  them. 

Mr.  CALKIN.  I  speak  of  commerce,  not  of  the  ship-building  interest. 
Would  it  have  any  particular  effect  on  the  commerce  of  the  country  if 
those  ships  were  allowed  to  be  brought  back? 

Mr.  HALL.  It  would  prevent  the  commercial  interests  of  America 
from  receiving  the  profits  they  now  get  from,  their  own  ships. 

Mr.  CALKIN.  Would  it  be  beneficial  or  not? 

Mr.  HALL.  It  would  not  be  beneficial  to  the  commerce  of  the  country. 
I  am  unquestionably  opposed  to  their  being  brought  back. 

Mr.  WELLS.  During  the  late  war  more  than  half  of  the  vessels 
engaged  in  commerce  on  the  Mississippi  River  went  down  into  rebellion 
and  hoisted  the  confederate  flag.  When  the  blockade  was  removed 
from  time  to  time  those  vessels  came  back  under  the  American  flag. 
There  was  no  objection  to  that.  But,  according  to  your  doctrine,  that 
property  should  have  been  sacrificed  ? 

Mr.  BUFFINTON.  If  I  understand  it,  those  vessels  are  now  under  the 
American  flag? 


NAVIGATION  INTERESTS.  115 

Mr.  WELLS.  Certainly. 

Mr.  HOLMAN.  What  flag  would  they  get  under  f 

Mr.  WELLS.  (To  Mr.  Hall.)  Are  you  aware  of  the  fact  that  blockade- 
rmmers  which  were  captured  by  the  government  were  sold  and  are  now 
under  the  American  flag? 

Mr.  HALL.  I  was  not  aware  of  it. 

Mr.  E.  S.  TOBEY.  Those  vessels  were  sold  under  a  decree  of  the  United 
States  district  court,  which  entitled  them  to  registry. 

Mr.  THEODORE  NICKERSON  next  addressed  the  committee.  He  said 
he  was  associated  with  one  of  the  largest  ship-owning  firms  in  the  city. 
They  were  ship-owners  and  ship-builders.  They  could  not  afford  to  buy 
ships,  and  therefore  they  built  them.  They  could  not  afford  to  pay 
another  man  to  build  ships  for  them,  and  therefore  they  built  them  for 
themselves,  saving  thus  so  much.  They  had  been  long  of  opinion  that 
the  remission  of  the  duties  on  materials  entering  into  the  construction 
of  ships  would  be  a  decided  advantage,  and  would  enable  them  to  com 
pete  successfully  with  foreign  tonnage.  The  prosperity  of  English  ship 
building  was  coincident  with  their  iron  ship  building.  For  himself  and 
his  firm,  they  would  prefer  wooden  ships ;  but  the  question  seemed  to 
turn  really  on  the  point  whether  they  would  be  allowed  to  build  iron 
ships  and  to  compete  with  England  in  that  respect.  Iron  ships  were 
sought  for,  and  higher  rates  of  freight  were  paid  to  them,  and  lower 
rates  of  insurance  charged.  A  prominent  Calcutta  merchant  had  given 
him  as  a  reason  why  he  preferred  to  ship  goods  by  an  iron  vessel  that, 
if  an  accident  happened,  that  was  the  last  of  her,  and  he  was  paid  his 
insurance,  whereas  a  wooden  ship  would  go  into  port  and  be  repaired, 
and  after  a  lapse  of  time  he  would  get  his  goods  to  market.  He  (Mr. 
Mckerson)  believed  that  the  matter  of  iron  shipping  would  decide 
whether  Americans  could  successfully  maintain  their  commercial  marine. 
Although  wages  were  higher  in  the  United  States  than  in  England,  he 
thought  that  the  superiority  of  American  labor  counterbalanced  the 
nominal  difference  in  wages.  He  thought  that,  in  coppering  vessels,  the 
relative  cheapness  of  the  copper  in  England  was  offset  by  the  greater 
difficulty  of  having  the  copper  put  on  in  a  workmanlike  mariner; 

As  to  admitting  foreign-built  vessels  to  American  registration,  it 
occurred  to  him  that,  aside  from  the  question  of  embarrassing  American 
ship-builders,  the  demand  for  ships  from  this  side,  added  to  the  demand 
at  home,  would  necessarily  increase  the  price,  and  eventually  make  the 
cost  of  ships  greater  than  they  could  be  built  for  at  present  in  the 
United  States. 

As  to  the  coasting  trade,  he  thought  that  if  English  ships  were  ad 
mitted  to  it,  under  ever  so  great  a  tax,  (unless  it  amounted  to  prohibi 
tion,)  the  only  avenue  open  to  the  employment  of  the  American  mer 
chant  marine  would  be  closed.  Fully  half  the  tonnage  of  the  United 
States  ships  was  employed  in  the  trade  between  Boston,  New  York,  and 
San  Francisco ;  and  if  that  avenue  were  closed,  American  tonnage  would 
not  be  worth  fifty  per  cent,  of  its  present  value. 

As  to  admitting  back  the  ships  that  were  put  under  the:  English  flag 
during  the  war,  he  was  opposed  to  it.  Although  his  firm  held  a  grpat 
many  ships  during  the  war,  it  had  not  put  one  of  them  under  a  foreign 
flag.  He  could  not  agree  with  the  argument  of  Mr.  Derby  in  that 
respect,  and  he  failed  to  see  any  advantage  that  would  result  fiwm 
restoring  them  to  the  American  flag. 

Mr.  EBEN  HOUSE,  an  underwriter  and  representative  of  the  French 
Lloyds,  next  came  before  the  committee.  He  said  that  his  business  was 
more  particularly  to  examine  the  quality  and  merits  of  ships,  and  to 


116  NAVIGATION   INTERESTS. 

classify  them  for  the  benefit  of  underwriters.  He  inspected  ships 
during  their  construction  to  see  that  they  had  all  the  requirements 
which  the  rules  and  regulations  prescribed  to  make  them  sea-worthy. 
His  impression  was  that  there  was  no  difference  in  this  country  in  the 
rates  of  insurance  charged  on  iron  and  on  wooden  vessels  of  the  same 
class.  He  presumed  that  in  England  they  did  make  such  a  difference. 
His  experience  in  England,  which  country  he  frequently  visited,  was 
that  there  had  been  an  effort  made  there  to  create  a  prejudice  against 
wooden  ships  and  in  favor  of  iron  ships  for  many  years  past,  the  reason 
being  that  the  English  had  iron  to  build  ships  and  had  not  wood.  That 
was  one  reason,  and,  he  presumed,  a  very  proper  one. 

The  CHAIRMAN.  Your  business  has  led  you  to  observe  the  revolution 
that  has  been  spoken  of  in  the  construction  of  ships.  What  is  your 
opinion  in  reference  to  iron  ships  superseding  wooden  ships  ? 

Mr.  E.  HOUSE.  I  have  no  doubt  that  that  will  be  the  case  when  we 
get  out  of  wood  to  build  ships,  and  when  they  can  be  built  cheaper  and 
to  better  advantage  of  iron.  Previous  to  1862-'3  we  could  compete  with 
any  nation  in  the  world  in  the  building  of  sailing-vessels.  We  asked 
no  favor  from  the  government  then ;  we  wanted  none.  We  were  having 
a  fair  chance  and  could  compete  with  all  the  world.  Since  that  time, 
and  since  the  high  duties  have  been  put  on,  we  have  not  been  able  to 
do  so.  There  is  the  simple  fact.  Everything  is  so  high  in  building  a 
ship,  and  in  sailing  her,  (that  is,  in  regard  to  provisions,)  that  we  cannot 
compete  with  England.  In  England  they  get  all  their  supplies  out  of 
bond  free  of  duty,  and  this  advantage  amounts  to  a  good  deal. 

The  CHAIRMAN.  What  relief,  in  your  judgment,  would  be  sufficient  to 
enable  us  to  restore  our  commerce  ? 

Mr.  E.  HOUSE.  Simply  put  us  back  where  we  were  previous  to  1861 
in  reference  to  duties  on  the  materials  in  ship-building. 

The  CHAIRMAN.  You  think  that  the  exemption  of  ship-building  ma 
terials  from  duty  would  be  sufficient  ? 

Mr.  E.  HOUSE.  I  have  no  doubt  that  it  would  help  a  great  deal.  We  try 
to  struggle  along  to  build  a  ship  now  and  then;  but  it  is  a  very  poor 
business. 

Mr.  MORRELL.  In  the  examination  of  wooden  ships  for  registration 
you  take  into  account  the  materials  of  which  they  are  built  as  well  as 
the  manner  in  which  they  are  built  ? 

Mr.  E.  HOUSE.  Certainly. 

Mr.  MORRELL.  Do  you  take  into  consideration,  in  the  examination  of 
an  iron  ship,  the  quality  of  the  iron  of  which  the  ship  is  built  ? 

Mr.  E.  HOUSE.  That  is  always  taken  into  consideration.  The  iron 
has  to  bear  .certain  tests. 

Mr.  MORRELL.  What  are  those  tests  ? 

Mr.  E.  HOUSE.  I  really  do  not  know.  I  have  had  very  little  to  do 
with  iron-built  vessels,  and  1  would  have  to  refer  to  the  rules  and  regu 
lations  respecting  iron-built  vessels. 

Mr.  MORRELL.  It  was  tested  in  New  York  that  the  English  Lloyds 
require  iron  vessels  to  be  built  at  a  certain  weight  per  ton,  and  that 
they  make  no  requirements  as  to  the  quality  of  the  iron  except  that  it 
should  boar  a  test  of  twenty  thousand  pounds  to  the  square  inch ;  and 
it  was  stated  that  the  iron  which  would  stand  two  or  two  and  a  half 
times  that  tensile  test  would  not  require  to  be  of  so  much  weight. 

Mr,  E.  HOUSE.  It  depends  upon  the  length  and  depth  and  breadth  of 
the  ship.  The  weight  of  iron  must  be  according  to  that. 

Mr.  MORRELL.  It  was  stated  there  that  if  the  American  ship-builders 
were  permitted  to  use  an  iron  of  the  same  strength,  yet  lighter  in 


NAVIGATION   INTERESTS.  117 

weight,  they  could  build  American  iron  ships,  of  the  same  tensile 
strength,  as  cheap  as  English  iron  ships. 

Mr.  E.  HOUSE.  I  presume  that  it  is  according  to  the  goodness  of  the 
iron. 

Mr.  MORRELL.  It  was  stated  there  that  the  fact  of  the  greater 
strength  of  the  iron  was  not  considered  in  the  insuring  of  a  vessel  in 
England.  Is  that  considered  here  ? 

Mr.  E.  HOUSE.  I  really  do  not  know  what  rules  they  have  here  in 
regard  to  iron  ship-building. 

Mr.  MORRELL.  I  believe  it  was  stated  there  that  they  would  not  rate 
a  vessel  A  No.  1  that  did  not  weigh  so  many  pounds  to  the  ton  measure 
ment,  regardless  of  the  strength  of  the  iron. 

Mr.  E.  HOUSE.  1  have  not  attended  to  the  statistics  about  iron-built 
vessels.  I  have  asked  the  question  several  times  at  headquarters  in 
Paris,  where  I  get  my  instructions  from.  They  had  a  meeting  in  Liver 
pool  this  last  year  to  revise  the  rules  and  requirements  of  ship-buiMing, 
and  to  try  to  get  a  uniform  regulation,  and  I  have  not  got  the  result 
yet. 

The  CHAIRMAN.  Areyo"u  aware  that,  so  far  as  English  iron  vessels  are 
concerned,  the  question  of  their  insurance  rests  on  the  rules  and  specifi 
cations  prepared  by  the  English  Lloyds  as  an  English  requisite  to  pass 
those  ships  ? 

Mr.  E.  HOUSE.  Yes,  sir ;  that  is  the  fact.  I  believe  that  the  French 
and  English  engineers  have  now  entered  upon  one  uniform  mode  of 
building  iron  ships. 

Dr.  OSBORN  HOUSE  next  addressed  the  committee.  He  said  that  he 
was  a  ship-owner  in  the  foreign  trade.  His  vessels  were  entirely  wooden 
ships,  trading  to  California,  the  East  Indies,  and  Europe.  He  had  some 
interest  in  iron  steamers  running  between  Boston  and  New  Orleans. 
There  were  two  English-built  iron  steamers  on  the  line. 

The  CHAIRMAN.  What  measures  would  you  suggest  to  be  adopted  in 
order  to  revive  our  navigation  interests  $ 

Mr.  O.  HOUSE.  I  think,  if  we  were  placed  as  we  were  formerly,  ,with 
but  little  if  any  duties  on  our  ship-building  materials,  we  could  compete 
with  foreigners.  Formerly  we  felt  that  we  could  take  care  of  ourselves. 
I  think"  that  until  quite  recently  ship-owners  have  never  asked  any  aid 
or  assistance  from  the  government.  They  have  always  said,  "  Let  us 
alone  and  we  can  take  care  of  ourselves."  But  for  seven  or  eight  years 
past  we  found  it  pretty  hard  work  to  get  along,  on  account  of  the  high 
duty  on  many  articles"  used  in  the  construction  of  ships.  The  cost  of 
ship-building  materials  in  this  country  is  double  the  cost  that  they  have 
to  pay  in  England. 

The  CHAIRMAN.  How  would  it  be  if  the  iron  of  which  you  manufacture 
were  duty  free? 

Mr.  O.  HOUSE.  It  would  be  a  great  saving  to  us,  of  course.  Then 
there  is  Manila  hemp,  for  which  there  is  no  substitute,  and  that  article 
pays  a  duty  of  twenty-five  dollars  per  ton  in  gold.  It  does  not  come  in 
competition  with  any  hemp  raised  in  this  country. 

The  CHAIRMAN.  Does  it  not  come  i  n  competition  with  Kentucky  hemp  ? 

Mr.  O.  HOUSE.  Not  at  all ;  for  it  is  used  for  running  rigging,  and  Ken 
tucky  hemp  is  never  used  for  that  purpose. 

The  CHAIRMAN.  Do  you  think  that  the  exemption  from  duty  of  all 
the  raw  materials  that  enter  into  the  construction  of  a  ship — hemp,  iron 
in  a  crude  state,  bars,  bolts,  sail-cloth,  and  duck — would  enable  Amer 
ican  ship-builders  to  compete  with  foreign  ship-builders  ? 

Mr.  O.  HOUSE.  I  think  so. 


118  NAVIGATION    INTERESTS. 

The  CHAIRMAN.  Would  you  ask  any  exemption  on  manufactured  duck  ? 

Mr.  O.  HOUSE.  The  price  is  much  higher  here  than  cotton  duck.  Dur 
ing  the  war  we  were  obliged  to  use  foreign  duck  altogether,  as  cotton 
was  so  high,  and  we  got  a  very  poor  article  at  that. 

The  CHAIRMAN.  You  think  that  the  exemption  of  duty  on  the  raw 
materials  would  be  sufficient  to  revive  American  ship-building? 

Mr.  O.  HOUSE.  I  think  that  with  that  we  would  be  able  to  compete 
with  foreigners. 

The  CHAIRMAN.  Have  you  any  interest  at  all  in  ship-building? 

Mr.  O.  HOUSE.  None  at  all. 

The  CHAIRMAN.  As  a  ship-owner,  would  you  be  in  favor  of  granting 
American  registration  to  foreign-built  vessels  ? 

Mr.  O.  HOUSE.  1  think  not.  I  think  that  would  be  a  great  injury  to 
our  mechanical  industry. 

The  CHAIRMAN.  What  effect  would  it  have  upon  our  navigation 
interests,  aside  from  the  ship-building  interest? 

Mr.  O.  HOUSE.  It  is  impossible  to  say.  It  would  have  a  very  serious 
effect  upon  the  ship-building  interest ;  there  is  no  doubt  about  that. 

The  CHAIRMAN.  Suppose  that  the  two  measures  were  put  together, 
the  exemption  from  duty  of  all  the  materials  entering  into  the  construc 
tion  of  a  ship,  and  the  free  registry  of  foreign-built  ships,  what  effect 
would  they  have  upon  the  ship-building  interest  ? 

Mr.  O.  HOUSE.  Since  the  English  have  commenced  building  iron  ships 
I  think  they  have  rather  an  advantage  ov<3r  us.  It  is  possible  that  if 
the  duties  were  taken  off,  or  a  drawback  of  the  duty  allowed  on  iron, 
we  might  successfully  compete  with  them ;  but  we  probably  could  not  at 
first.  It  would  take  some  time  to  get  things  properly  arranged  so  that 
we  could  build  iron  ships  as  cheaply  as  they  can.  They  can  build  an 
iron  ship  almost  as  cheaply  as  we  can  build  a  wooden  one. 

Mr.  CALKIN.  How  is  the  coasting  trade  now  ? 

Mr.  O.  HOUSE.  It  has  not  been  very  profitable  these  few  years  past. 

Mr.  CALKIN.  A  law  relieving  the  ship-building  interest  would  help 
very  much  the  present  ships  in  the  matter  of  their  repairs. 

Mr.  O.  HOUSE.  It  would  in  their  repairs.  I  think  that  most  of  the 
repairs  that  are  now  done  on  the  other  side  would  then  be  done  here. 

Mr.  HOLMAN.  If  the  policy  were  adopted  of  giving  to  the  American 
ship-builder  the  benefits  that  may  arise  from  the  exemption  of  his  mate 
rials  from  internal  and  external  taxes,  and  if  American-built  ships  were 
given  the  exclusive  benefit  of  the  domestic  trade,  as  they  have  now,  and 
if  at  the  same  time  Congress  were  to  allow  the  registration  of  foreign- 
built  vessels  purchased  by  American  citizens  on  tbe  imposition  of  a  duty 
of  ten  or  fifteen  per  cent.,  what  effect  would  these  three  measures  com 
bined  have  on  ship-building  and  on.  commerce  ?  How  would  they  affect 
the  ship-building  interest  on  the  one  hand  and  the  commercial  interest 
on  the  other  ? 

Mr.  O.  HOUSE.  I  should  think  they  would  have  a  favorable  effect ;  it 
strikes  me  so.  I  never  thought  of  that  mode  of  dealing  with  the  ques 
tion. 

Mr.  HOLMAN.  Two  of  those  measures  would  be  friendly  to  the  ship 
building  interest,  and  the  other  one  to  the  promotion  of  commerce  ? 

Mr.  O.  HOUSE.  Yes,  sir. 

Mr.  HOLMAN.  Would  not  these  three  measures  taken  together  have 
the  effect  of  increasing  the  ship-owning  of  the  country,  at  least? 

Mr.  O.  HOUSE.  I  should  think  they  would. 

Mr.  HOLMAN.  And  might  they  not  have  that  effect  without  necessarily 
impairing  the  interests  of  the  ship -builder  ? 


NAVIGATION  INTERESTS.  119 

Mr.  O.  HOUSE.  I  do  not  see  how  they,  would  injure  him. 

Mr.  HOLMAN.  Looking  at  the  subject  as  a  ship-owner,  you  think  that 
these  three  measures  connected  together,  if  they  should  become  the 
policy  of  the  government,  could  not  be  justly  objected  to  by  either  the 
ship-building  interest  on  the  one  hand  or  the  commercial  interest  on  the 
other  1 

Mr.  O.  HOUSE.  My  impression  is  that  they  would  be  well  received ;  I 
should  think  so. 

Mr.  FREDERICK  NICKERSON,  ship-owner,  said  that  he  concurred  gen 
erally  in  the  expression  of  opinion  by  the  ship-owners  and  ship-builders 
as  to  the  necessity  of  relief  in  the  shape  of  drawbacks.  The  only  point 
that  he  would  like  to  draw  the  attention  of  the  committee  to  was  to  the 
relief  to  steam  navigation  in  the  matter  of  coal.  He  suggested  whether, 
if  the  duty  on  coal  were  not  to  be  repealed,  an  arrangement  might  not 
be  made  by  which  coal  should  be  allowed  to  be  brought  from  abroad, 
entered  in  bond,  and  exported  for  consumption  on  the  high  seas.  He 
said  that  coal  could  be  bought  in  Pictou  at  $2  05  a  ton  in  gold.  The 
duty  here  was  $1  25  in  gold.  If  that  coal  could  be  brought  here  and 
landed  in  bond,  and  could  be  shipped  for  consumption  on  steamers  and 
consumed  at  sea,  with  a  proper  guard  against  its  being  relanded,  it  would 
be  a  very  great  relief  to  the  steam  commerce  of  the  country. 

Mr.  MORRELL.  I  think  that  that  would  be  entirely  satisfactory  to  the 
coal-producing  interest  of  the  country. 

Mr.  F.  NICKERSON  remarked  that  it  seemed  to  him  that  that  relief 
to  the  steam  commerce  of  the  country  was  as  much  needed  as  any  other 
matter.  It  was  a  matter  of  very  great  importance.  The  high  price  of 
coal  was  very  much  against  the  encouragement  of  steam  commerce. 
That  system  would  naturally  follow,  on  the  same  principle  as  allowing 
ships  to  take  their  stores  for  consumption  at  sea,  as  is  done  in  England. 
In  fact,  there  had  been  some  little  correspondence  with  the  Secretary  of  the 
Treasury  011  that  very  point.  It  had  been  thought  first  that  it  was  a 
point  that  might  be  decided  by  himself  5  but;  there  had  been  afterward 
nothing  done  about  it,  as  it  had  been  considered  that  it  might  lead  to 
opening  the  door  to  some  other  matters,  such  as  taking  ships'  stores  out 
of  bond.  This  privilege  seemed  to  him  a  very  reasonable  thing  to  be 
asked  for  and  granted. 

Mr.  NATHANIEL  McKAY  submitted  a  written  statement  of  the  cost 
of  building  iron  steamships  both  in  this  country  and  abroad. 

The  letter  is  as  follows : 

BOSTON,  October  18,  1869. 

GENTLEMEN  :  *  *  *  The  cost  to  build  an  iron  ship  in  England  ready  for 
sea  is  (£14)  fourteen  pounds  per  ton  ;  in  this  country  it  would  be  (£22)  twenty-two 
pounds  per  ton.  Ho  says  that  there  are  now  building  on  the  Clyde  one  hundred  ves 
sels,  all  of  iron,  upward  of  one  hundred  thousand  tony,  twelve  thousand  horse-power; 
last  year  (18G8)  they  built  171,126  tons  of  steam  and  sailing  vessels,  15,940  horse-power, 
and  still  the  business  is  on  the  increase,  and  several  new  ship-yards  are  starting  up.  A 
steamship  arrived  in  London  in  the  month  of  September  with  three  thousand  tons  of 
tea.  sixty-five  days  from  China,  and  still  another  with  a  freight  valued  at  thirty  thou 
sand  pounds,  or  one  hundred  and  iifty  thousand  dollars.  He  says  the  steamships  will 
use  up  the  tea  sailing  clippers  in  the' China  trade,  and  owners  of  iron  sailing  ships  are 
jnneh  alarmed  at  the  progress  of  steam  over  sailing  vessels  in  the  China  as  well  as 
other  trades.  A  new  ship  in  Scotland,  built  of  iron,  387  feet  long,  43  feet  beam,  30  feet 
deep,  speed  ten  knots,  cost  seventy-eight  thousand  pounds.  This  ship  has  made  six 
teen  and  one-quarter  voyages  to  New  York  in  twenty-lour  months,  an  average  of  forty- 
four  and  one-fourth  days  to  the  round  voyage.  Carries  of  crew,  all  told,  one  hundred 
and  ten  persons.  This  same  company  are  now  building  .another  vessel  to  run  to  New 
York  from  Liverpool.  She  is  to  be  415  feet  long  on  deck,  43  feet  beam,  :!0  feet  deep, 
speed  twelve  knots,  costing  complete,  ready  for  sea,  without  provisions,  eighty-iivo 
thousand  pounds.  The  engine  for  this  ship  cost  eighteen  thousand  pounds.  We  could 


120  NAVIGATION    INTERESTS. 

not  "build  the  same  ship  hero  for  twice  that  amount  of  money.  A  steamer,  with  a  com 
pound  engine,  has  just  arrived  from  China,  with  two  thousand  four  hundred  tons  of  tea, 
in  sixty-two  days.  She  is  a  ship  309  feet  long,  28  feet  deep,  39  feet  wide,  register  2,280 
tons  gross,  net  1,550  tons— 2,400  tons  of  fifty  feet  to  the  ton  ;  sails  nine  knots ;  bark- 
rigged;  main  yard  sixty-two  feet ;  burns  twenty-four  tons  of  coal  per  day  ;  cost  fifty- 
two  thousand  pounds.  The  same  company  are  building  four  others  for  the  China  trade. 
The  Chinese  tea  clippers  are  used  up  on  account  of  the  steamers  doing  such  wonders. 
The  cost  of  the  angle  iron  for  the  frames  of  ships,  in  England,  cut  to  lengths,  seven 
pounds  ten  shillings;  the  cost  of  plates,  cut  to  shape  for  an  entire  ship,  is  eight  pounds 
five  shillings ;  wire  rigging  twenty-one  pounds  per  ton ;  chain  cables  ten  pounds  pel 
ton.  Cost  of  American  angle  iron  for  a  ship  $134  40  per  ton,  a  difference  in  favor  of 
England  of  $89  40,  or  four  cents  per  pound.  Cost  of  plates  in  America  $112  per  ton  ; 
in  England  $49  50 ;  difference  in  favor  of  England,  $62  50,  or  three  cents  per  pound. 
Cost  of  chain  cables  in  this  country  is  $134  40  per  ton ;  difference  in  favor  of  England 
$57  20.  Cost  of  wire  rigging  in  America.  $291  20  per  ton ;  difference  in  favor  of  Eng 
land,  $89  60.  *  *  *  *  * 
I  have  many  more  figures  that  I  could  give  you,  but  will  not  tax  your  patience. 

I  remain,  cordially  yours, 

NATH'L  McKAY. 
To  JOHN  LYNCH. 

Chairman  Committee  on  Commerce. 

The  CHAIRMAN  asked  Mr.  McKay  whether  his  firm  had  built  any  iron 
sailing  or  steam  vessels. 

Mr.  McKAY  replied  that  his  firm  could  not  afford  to  build  them. 

Mr.  CALKIN  inquired  who  had  built  the  Merrimac. 

Mr.  McKAY  replied  that  it  had  been  built  by  Mr.  Loring,  who  had 
been  before  the  committee  to-day. 

The  CHAIRMAN.  In  your  opinion,  if  the  duties  were  taken  off  from  the 
materials  entering  into  the  construction  of  iron  and  wooden  vessels,  could 
the  American  ship-builder  compete  successfully  with  foreign  builders  in 
the  construction  of  both  those  classes  of  vessels  ? 

Mr.  McKAY.  I  think  he  could  ;  but  if  we  go  to  work  to  have  a  bill 
passed  repealing  the  duty  on  iron  alone  it  will  kill  the  whole  thing,  for 
we  will  have  all  Pennsylvania  in  Washington.  And  if  we  try  to  have 
the  tax  withdrawn  on  cotton  duck,  we  will  have  the  mills  of  Lawrence 
and  Baltimore  represented  at  Washington. 

Mr.  BTJFFINTON.  And  if  you  say  hemp,  you  will  have  my  constituents 
acting  against  you  ? 

Mr.  McKAY.  Yes,  sir.  We  cannot  specify  any  one  thing.  But  we 
must  have  the  duty  remitted  on  everything  that  goes  into  the  construc 
tion  of  a  ship  and  into  its  repairs,  whether  it  be  a  sailing  ship  or  a  steam 
ship. 

The  CHAIRMAN.  Do  you  know  any  ship-owner  who  has  gone  entirely 
out  of  the  business  I 

Mr.  McKAY.  Yes,  sir  ;  I  know  one  gentleman  who  was  appointed  on 
the  committee  of  the  Board  of  Trade,  but  who  would  not  attend,  he  was 
so  much  disgusted  with  the  business.  He  was  a  very  large  ship-owner ; 
but  his  money  is  invested  to-day  in  railroads. 

Mr.  BUFFINTON.  Do  you  think  that  railroads  pay  him  a  better  per 
centage  than  ships  would  ? 

Mr.  McKAY.  I  think  they  do.  The  government  has  aided  them  more 
tl&m  it  has  aided  the  ship-yards.  I  asked  one  member  of  Congress  from 
Boston,  the  other  day,  who  used  to  be  one  of  the  largest  ship-owners  in 
the  country,  in  reference  to  this*  drawback  on  ship-building  materials. 
Well,  he  did  not  know.  He  thought  it  might  be  done.  The  committee 
was  very  much  in  favor  of  it,  but  for  himself  he  had  very  much  doubt 
'ebout  it.  If  we  do  not  have  this  relief  we  are  going  to  be  wiped  from 
the  ocean.  We  do  not  want  American  ships  that  went  under  the  Eng 
lish  flag  taken  back  to  this  country  $  nor  do  we  want  foreign  ships  en- 


NAVIGATION   INTERESTS.  121 

rolled  in  this  country.  If  we  adopt  that  policy,  the  honest  men  who 
learned  the  ship-building  trade  will  have  to  pack  np,  go  west,  and  buy 
farms,  or  get  the  government  or  some  of  the  railways  to  give  them  farms. 
To-day  you  cannot  hire  a  joiner  in  Boston  to  work  on  a  ship  at  less  than 
four  dollars.  The  mechanics  who  have  worked  side  by  side  with  me  are 
to-day  driving  potato  carts  through  the  city. 

Mr.  CALKIN.  If  the  government  does  not  protect  the  shipping  interest 
all  the  mechanics  will  be  driven  out  of  it,  and  in  five  or  ten  years  there 
will  be  none  left  ? 

Mr.  McKAY.  There  will  be  still  some  left  to  keep  up  the  coastwise 
trade. 

Mr.  CALKIN.  Various  opinions  have  been  expressed  in  regard  to  the 
capability  of  American  mechanics  competing  with  foreigners  in  the  con 
struction  of  iron  ships.  Do  you  not  think  that  they  are  ready  to  go  to 
work  and  to  build  iron  ships  without  waiting  one  or  two  years  to  learn 
how  ? 

Mr.  McKAY.  I  do  not  think  that  any  man  on  the  other  side  of  the 
water  can  beat  a  Yankee  any  way.  That  is  my  idea.  I  am  a  good  deal 
of  the  opinion  of  John  Bright,  who  said  in  a  speech  that  every  other 
Yankee  you  find  has  got  a  patent  of  some  kind.  I  do  not  think  that 
any  class  of  mechanics  can  beat  the  American  mechanics.  Of  course, 
we  have  got  to  have  some  experience  in  building  iron  steamers.  We 
have  built  but  few  iron  ships,  and  most  of  them  have  been  failures. 
The  government  spent  one  hundred  millions  during  the  war  and  got  no 
navy.  All  that  New  York  is  doing  in  the  way  of  merchant  marine  is  in 
the  coastwise  trade.  The  New  Yorkers  pride  themselves  on  the  number 
of  steamers  in  their  port ;  but  John  Bull  owns  them.  As  to  the  Pacific 
Mail  Steamship  Company,  the  English  have  got  ships  on  the  same  line 
that  are  burning  only  thirty  tons  of  coal  a  day,  when  these  New  York 
side-wheelers  are  burning  sixty-five  tons,  and  the  English  will  eat  them 
all  up. 

Mr.  CALKIN.  Allow  me  to  say  that  the  Pacific  Mail  Steamship  Com 
pany  is  running  large  steamers  on  a  consumption  of  forty  tons  a  day. 

Mr.  McKAY.  Well,  they  run  very  slowly.  But  you  will  find  that  when 
they  come  to  run  last  they  burn  from  fifty  to  sixty  tons  a  day.  If  the 
government  will  only  go  to  work  and  relieve  the  ship-builders  and  give 
us  some  subsidy  for  mail  lines  of  steamers,  you  will  see  the  hammers  and 
axes  at  work  in  every  ship-yard.  The  government  gives  millions  of  sub 
sidies  to  railroads,  and  for  want  of  a  subsidy  to  steamships  it  allows  all 
our  trade  across  the  ocean  to  be  carried  on  in  foreign  bottoms. 

Mr.  WELLS.  In  your  communication  to  the  committee  have  you  stated 
the  comparative  cost  of  an  iron  ship  here  and  in  England  ? 

Mr.  McKAY.  Yes,  sir ;  I  say  that  it  costs  nearly  as  much  again  here. 

Mr.  WELLS.  Are  you  now  engaged  in  the  building  of  ships  ? 

Mr.  McKAY.  No,  sir ;  there  are  no  ships  to  be  built  now ;  and  I  think 
I  shall  spend  the  rest  of  my  days  in  the  city  of  New  York,  where  all 
business  goes. 

Mr.  E.  S.  TOBEY,  of  the  Boston  Board  of  Trade,  said  that  it  had  been 
remarked  by  a  distinguished  member  of  Congress,  and  not  without  appa 
rent  truth,  that  every  interest  in  the  United  States  had  its  friends,  but 
that  the  American  shipping  had  none.  He  did  not  wonder  at  that  re 
mark,  judging  from  the  standpoint  at  Washington,  where  the  represent 
atives  of  the  American  shipping  interest  had  seldom  or  never  appeared. 
It  had  been  stated  before  the  committee  that  that  interest  had  never 
needed  relief.  Up  to  1801,  when  the  wrar  commenced,  that  was  true,  so 
farjis  related  to  sailing  vessels,  but  not  so  far  as  related  to  steamers — 


122  NAVIGATION   INTERESTS. 

because  the  Collins  line  of  steamers  did  ask  and  did  receive  aid  from  the 
government.  He  submitted  that  it  was  specially  the  interest  of  the 
United  States  government,  for  its  own  sake,  to  restore  the  American  flag 
to  the  ocean.  It  was  pre-eminently  a  national  question.  Capital  could 
very  well  take  care  of  itself.  The  only  thing  on  the  part  of  Congress 
was  to  see  that  it  did  not  take  too  good  care  of  itself.  It  was  a  rare  and 
exceptional  thing  to  find  a  large  capitalist  who  could  be  called  a  ship 
owner  ;  ships  were  generally  owned  by  several  persons.  Capitalists  who 
had  money  in  ships  could  sell  their  ships  to  England  and  put  their  cap 
ital  in  western  railroads  and  mortgages.  Thus  capital  would  take  care 
of  itself.  But  that  was  not  for  the  interest  of  the  government,  which 
should  encourage,  maintain,  and  develop  the  mechanical  industry  of  the 
country,  as  the  cheapest  way  in  which  to  maintain  its  navy  power.  If 
the  ship-building  interest  were  not  encouraged,  the  mechanics  engaged 
in  it  would  be  dispersed ;  and  once  dispersed,  how  could  they  ever  be  got 
back  again  ?  The  trade  of  a  ship-builder  was  not  learned  in  a  day.  Naval 
architecture  was  perhaps  one  of  the  finest  sciences  that  could  be  named ; 
and  the  time  might  come  when  the  country  would  need  another  Erics- 
sou.  If  the  business  were  to  be  transferred  to  the  rival  of  the  United 
States  on  the  other  side  of  the  Atlantic,  by  admitting  foreign-built  ves 
sels  to  American  registry,  it  was  not  to  be  expected  that  the  few  ship 
builders  now  attempting  to  carry  on  their  business  would  continue  that 
fruitless  attempt.  It  was,  therefore,  a  matter  of  the  highest  importance 
for  the  government  itself,  that  the  ship-building  mechanics  should  be 
sustained,  not  for  the  sake  of  capital,  but  for  the  sake  of  the  nation. 
Every  American  ship-owner  could  better  afford  to  transfer  his  ship  to 
Great  Britain  and  invest  his  capital  how  he  chose,  than  the  United 
States  government  could  afford  to  allow  that  to  be  done. 

As  to  the  decline  of  the  shipping  interest  of  the  United  States,  he 
would  merely  refer  to  Mr.  Wells's  report,  in  which  it  is  stated  that  whereas, 
in  1853,  American  commerce  on  the  high  seas  was  fifteen  per  cent,  greater 
than  that  of  Great  Britain,  and  maintained  a  close  competition  until 
1SG1,  it  had  fallen  in  18G4  to  less  than  one-half  as  much,  and  was  now  prob 
ably  not  more  than  one-third.  The  causes  of  this  decline  he  attributed, 
first,  to  the  operation  of  confederate  cruisers,  by  which  many  vessels 
were  destroyed  and  many  more  transferred  to  the  Engh'sh  flag,  to  the 
natural  termination  of  ship's  lives,  and  to  the  fact  that  American  currency 
had  become  inflated  to  such  an  extent  that  it  was  impossible,  during  the 
war,  to  replace  those  ships.  American  commerce  had  thus  declined,  not 
through  any  want  of  enterprise  on  the  part  of  American  citizens,  but 
from  natural  causes  which  the  government  itself  could  not  control,  and 
for  which  it  was  in  no  degree  responsible  up  to  this  time.  He  regarded 
the  appointment  of  this  committee  as  one  of  the  most  encouraging  feat 
ures  that  he  had  seen  for  a  long  time,  because  it  showed  that  Congress 
meant  to  obtain  information  on  the  subject,  and  to  address  itself  to  the 
remedies  by  which  the  shipping  interests  of  the  country  could  be  brought 
up  to  a  point  in  competition  with  other  maritime  nations. 

The  simple  question  was,  how  it  could  be  done.  He  submitted,  as  a 
logical  proposition,  that 'if  the  United  States  would  do  just  as  England 
and  other  nations  had  done  to  promote  their  commerce,  the  same  results 
would  follow,  and  American  shipping  would  again  come  to  the  front 
and  claim  its  share  in  the  carrying  trade  of  the  world  both  by  steam 
and  sailing  vessels.  This  country  was  to-day  paying  from  twenty  to 
thirty  million  dollars  a  year  to  foreign  nations  for  the  mere  transporta 
tion  of  merchandise  in  foreign  bottoms. 

If  the  government  adopted  the  policy  of  permitting  foreign-built  ves- 


NAVIGATION   INTERESTS.  123 

sels  to  be  purchased  and  registered  in  the  United  States,  what,  he  asked, 
would  be  the  effect  on  the  finances  of  the  country— to  say  nothing  of  its 
effect  on  mechanical  industry?  It  would  take  from  the  country  another 
vast  sum  of  gold,  and  hand  it  over  to  the  commercial  rival  of  the  United 
States  to  build  up  its  mammoth  steamboat  interest  and  utterly  to  crush 
put  that  of  the  United  States.  It  seemed  to  him  entirely  suicidal  to  the 
interests  of  the  United  States  to  think  for  a  moment  of  transferring  to 
the  American  flag  vessels  of  foreign  construction.  A  ship  was  a  sort 
of  national  institution ;  and  the  men  to  build  ships  must  be  kept  at  home. 
Steamers  and  ships  amounting  to  three  hundred  sail  had  been  put  in 
requisition  to  blockade  the  southern  coast  during  the  rebellion  ;  and  if 
there  had  not  been  American  artisans  to  draw  upon,  where  would  these 
ships  have  been  built  and  repaired  ? 

Secretary  Stan  ton  had  said  to  him,  in  the  early  part  of  the  war,  "  I 
want  you  to  go  home  and,  by  private  enterprise,  push  our  iron-clad s  for 
ward.  Bring  everything  into  requisition,  and  give  us  something  to  con 
tend  with  this  Merrimac,  or  we  are  gone.  Even  the  southern  women 
are  selling  their  trinkets  to  build  up  a  navy,  and  here  we  are  relying  on 
the  navy  yards,  and  no  results."  Fortunately  the  ship-yards  and  the 
skill  were  to  be  obtained.  This  country  was  liable  to  be  at  war  again. 
If  that  war  were  to  be  with  Great  Britain,  and  if  Americans  had  gone 
to  work  and  built  up  her  navy  at  the  expense  of  the  iron  ship-building 
interest,  what  would  be  the  result  ? 

He  found  that  there  was  a  very  prevalent  notion  abroad  that  Ameri 
cans  did  not  know  how  to  build  iron  steamships.  There  was  no  greater 
fallacy  than  that.  The  Collins  line  had  proved  the  ability  of  American 
steamers  to  compete  with  English  steamers  in  point  of  speed.  Mr.  Col 
lins  had  made  a  mistake,  however,  in  undertaking  to  surpass  the  English 
in  that  respect.  It  cost  too  much,  and  that  cost  was  not  counterbal 
anced  by  the  subsidy.  He  (Mr.  Tobey)  was  chairman  of  the  committee 
which  had  the  Mississippi  and  Merrimac  steamships  built  recently  at 
South  Boston,  and  he  had  been  informed  by  the  man  who  made  the 
model  that  he  was  paid  six  hundred  dollars  to  duplicate  the  model  and 
send  it  to  Liverpool.  These  ships  proved  the  ability  of  American 
mechanics  to  model  a  ship  equal  to  anything  that  floated.  Why  should 
that  ability  not  be  cherished  and  encouraged  ? 

American  seamen  should  also  be  kept  up  and  encouraged.  During 
the  late  war  the  government  had  drawn  from  the  merchant  marine  thirty 
or  forty  thousand  men  to  blockade  the  southern  ports.  Without  that 
blockade  the  war  would  have  terminated  speedily  in  the  success  of  the 
rebellion ;  and,  without  the  merchant  marine,  the  blockade  could  not 
have  been  maintained.  The  government  could  not  afford  to  see  the 
American  merchant  marine  crushed  out.  That  merchant  marine  was 
indispensable  for  the  maintenance  of  the  national  maritime  power,  and 
it  must  be  constructed  by  American  mechanics,  conducted  by  American 
citizens,  and  owned  by  American  capitalists. 

The  English  government  had  increased  its  subsidies  to  steamship 
lines.  It  had  increased  that  of  the  Peninsular  and  Oriental  line  from 
about  two  hundred  thousand  pounds  sterling  originally  to  five  hundred 
thousand  pounds.  England  claimed  to  be  a  free- trade  country ;  but 
what  did  she  do  with  her  foreign  commerce — her  steamship  interest? 
She  protected  it  to  a  degree  that  no  other  interest  there  ever  was  pro 
tected.  And  why  ?  Because  it  was  the  most  potent  means  of  developing 
every  other  commercial  interest,  and  because  it  was  the  cheapest  way 
of  sustaining  her  navy.  Earl  Gray  had  said  that  one  of  the  reasons 
why  he  was  in  favor  of  subsidizing  steamships  to  all  parts  of  the  world 


124  NAVIGATION   INTERESTS. 

was,  that  swift  ships  bring  back  swift  orders  for  manufactured  goods. 
And,  as  illustrating  the  force  of  that  remark,  in  less  than  five  years 
after  subsidizing  the  line  to  Brazil,  the  exports  from  England  to  Brazil 
increased  three  hundred  per  cent. 

While  England  possessed  the  natural  advantage  of  cheap  coal,  cheap 
iron,  cheap  labor,  cheap  capital,  she  was  not  content  with  them  as  a 
means  of  competing  with  other  nations;  but  she  very  wisely  took  a 
still  further  step,  and,  for  the  purpose  of  drawing  capital  to  the"  develop 
ment  of  her  steam  commerce,  she  had  commenced  in  1838  to  pay  four 
steamers,  running  from  Liverpool  to  Boston,  eight  hundred  thousand 
dollars  a  year  for  carrying  the  mails.  She  had  commenced,  the  same 
year,  the  subsidies  to  the  Peninsular  and  Oriental  line,  and  increased 
them  till  they  now  reached  five  hundred  thousand  pounds  sterling  per 
annum.  The  course  which  England  pursued  in  subsidizing  her  foreign 
commerce  he  regarded  as  wise. 

Just  as  soon  as  the  policy  of  the  United  States  government  would 
allow  American  ship-builders  to  construct  vessels  as  cheaply  as  they  are 
constructed  in  England,  by  remitting  the  duties  on  materials,  and  would 
then  compensate  steamship  lines  for  carrying  the  mails  to  the  same  extent 
and  for  as  long  a  period  as  England  did,  and  would  then  remit  the 
duties  on  all  ships'  stores  as  England  did,  and  would  then  omit  to  tax 
American  ships  internally  as  England  omitted  to  do — when  the  United 
States  government  accepted  those  ideas  and  acted  on  them,  it  would  be 
found  that  the  enterprise  and  skill  of  the  people  of  the  United  States 
would  enable  them  to  compete  with  any  other  people. 

The  policy  of  subsidizing  had  not  been  pursued  by  England  alone. 
The  Emperor  of  the  French  had  seen  the  results  achieved,  and  had  said 
that  he  was  not  going  to  have  such  a  powerful  neighbor  without 
competing  with  her,  and  he  had  commenced  to  subsidize  a  line  to  New 
York,  which  to-day  received  twenty-six  thousand  dollars  in  gold  for 
every  round  trip.  And  the  result  was  that  the  last  New  York  enterprise, 
the  line  of  the  Arago  and  Fulton,  had  had  to  surrender.  Although  the 
United  States  government  had  given  them  the  postal  service,  they  were 
compelled  to  withdraw  and  to  give  up  the  whole  route  to  the  French. 
The  Pereire  and  Ville  de  Paris  had  been  built  in  Scotland,  but  it  was 
because  the  Emperor  knew  very  well  that  France  had  not  the  experience 
in  naval  construction  to  compete  with  England  or  with  the  United  States 
in  the  merchant  marine.  It  was  just  the  same  with  Germany  and  with 
Holland.  They  were  subordinate  naval  powers,  and  therefore  had  no 
objection  to  allowing  foreign-built  vessels  to  their  registration.  They 
saw  their  advantage  in  transportation  interests.  They  had  acted  wisely 
and  well  in  the  matter.  But  the  tlnited  States,  occupying  a  great  central 
position,  holding  to  the  continents  of  Asia  and  Europe,  claiming  even  to 
be  the  rival  of  England  and  France  as  a  naval  power,  could  not  afford 
to  do  so.  The  navy  and  the  mercantile  marine  of  the  country  had  done, 
prior  to  the  late  war,  more  than  anything  else  to  raise  the  reputation  of 
the  nation  before  the  maritime  nations  of  the  earth,  and  to  make  the 
American  flag  respected ;  and  every  American  citizen  wanted  to  see 
that  flag  flying  again  in  every  foreign  port.  In  tbe  war  of  1812,  New 
England  owned  seven-eighths  if  not  a  larger  proportion  of  the  tonnage 
of  the  United  States.  The  merchants  of  Salein  had  contributed  out  of 
their  own  pockets  to  build  the  Essex  frigate,  which  chased  hundreds  of 
British  ships  from  the  seas,  which  went  into  the  mouth  of  the  English 
Channel,  and  which  so  pestered  and  restrained  the  commerce  of  England 
that  the  rates  of  insurance  went  so  high  as  practically  to  exclude  their 
ships  from  the  sea ;  and  this  had  been  one  of  the  most  potent  means  of 


NAVIGATION   INTERESTS.  125 

bringing  England  to  terms.  He  had  adverted  to  these  facts  to  show 
the  intimate  relations  that  existed  between  the  naval  power  and  the 
mercantile  marine,  and  to  show  that  the  one  cannot  be  maintained 
without  the  other.  The  men  who  constructed  ships  were  needed  as  well 
as  the  men  who  navigated  them;  and  he  believed  that  everything 
possible  should  be  done  to  cherish  the  ship-building  interest.  He  felt 
encouraged  and  hopeful  that  when  the  facts  were  fully  investigated  and 
understood  it  would  be  found  tha.t  the  interests  of  the  country,  irre 
spective  of  section,  demanded  the  restoration  of  the  American  flag  not 
only  on  sailing-vessels  but  on  steamships  on  the  ocean. 

It  had  been  assumed,  erroneously,  that  the  people  of  the.  West  had  no 
particular  interest  in  the  matter  of  shipping.  But  he  proposed  to  show 
that  they  had  absolutely  more  interest  in  it  than  the  people  of  the  East 
had.  The  latter  could  better  afford  to  dispose  of  all  their  ships  and  to 
invest  the  proceeds  in  western  railroads,  where  they  could  get  a  better 
return  to  their  capital,  than  the  people  of  the  West  could  afford  to 
dispense  with  the  facilities  for  getting  their  produce  to  foreign  markets 
at  a  low  rate  of  transportation.  If  the  United  States  government  should 
pay  a  subsidy  for  carrying  the  mails  across  the  Atlantic  as  large  as 
England  pays — so  large  as  to  compensate  entirely  the  ship-owner  for 
the  whole  voyage,  and  so  large  that  he  could  say  to  the  producer  or 
shipper,  "We  can  afford  to  carry  your  goods  for  nothing,  we  are  so  liberally 
compensated  by  the  government'7 — who  would  be  deriving  the  most 
advantage  from  it  I  The  producer  in  the  West.  He  could  have  his 
goods  transported  at  a  very  low  rate,  because  the  ship-owner  could  afford 
to  do  it,  and  competition  would  induce  him  to  do  it.  Therefore  the 
subsidy  paid  out  of  the  treasury  of  the  United  States  and  assessed  on 
the  general  interests  of  the  country  would  be  one  of  the  best  means  of 
developing  the  agricultural  interests  of  the  country,  by  aiding  to  cheapen 
transportation  from  the  place  of  production  to  the  place  of  consumption  on 
the  other  side  of  the  Atlantic.  Hence,  as  a  mere  practical  question,  the 
people  of  the  West  had  as  much  interest  in  promoting  lines  of  steamships 
and  sailing  vessels  as  the  people  of  the  East.  He  had  never  met  the 
first  man  in  his  intercourse  in  Washington,  or  in  a  convention  of  two 
hundred  and  forty  members  held  in  Boston  two  years  ago,  who  dissented 
from  the  general  proposition  that  it  was  of  the  greatest  national  import 
ance  to  restore  American  commerce  under  the  American  ilag.  That 
convention  had  unanimously  voted  a  resolution  to  that  effect,  which  had 
been  transmitted  to  Congress. 

In  conclusion,  Mr.  Tobey  stated,  in  reply  to  a  remark  by  Mr.  Calkin, 
that  American  ship-owners  must  be  put  on  the  same  footing  as  for 
eigners.  They  must  have  all  the  encouragement  that  foreign  govern 
ments  give  to  their  commerce ;  and  even  then  the  American  ship-owners 
would  be  placed  under  the  disadvantage  arising  from  the  condition  of 
the  currency. 

Mr.  FRANKLIN  W.  SMITH,  treasurer  of  the  Atlantic  Iron  Works,  made 
some  additional  remarks.  He  said  that  the  revenue  was  now  receiving 
nothing  from  the  taxation  of  ship- iron,  because  none  was  imported. 
Therefore  the  government  would  be  no  loser  by  allowing  a  drawback 
on  iron  used  in  ship- building.  The  iron  men  of  Pennsylvania  were 
making  no  sales  of  ship-iron  to-day,  and  therefore  they  would  not  be  the 
losers.  It  would  be  remembered  that  the  subsidies  to  the  British  lines 
were  at  first  looked  upon  with  great  jealousy  in  the  United  States  because 
that  navigation  would  be  making  the  entire  coasts  of  the  United  States 
familiar  to  British  pilots.  He  remembered  that  when  the  Cuuard  steamer 
Unicorn  came  into  the  port  of  Boston  there  was  great  alarm,  because 


126  NAVIGATION   INTERESTS. 

the  pilotage  of  the  port  was  being  made  known  to  British  pilots. 
But  to-day  there  was  scarcely  a  port  of  the  American  coast  that  was  not 
as  familiar  to  British  ship-masters  and  British  pilots  as  to  any  American 
pilots.  The  object  of  the  Britisli  subsidies  had  not  been  simply  to  keep 
up  a  mercantile  marine,  but  had  been  also  to  keep  afloat  in  the  cheapest 
possible  way  a  naval  force;  and  England  had  done  it.  She  could  throw 
fifty  thousand  men  upon  any  point  of  the  globe  to-day  earlier  than  any 
other  nation.  It  seemed  to  him  that  there  was  no  interest  to  be  injured 
by  a  change  in  the  present  condition  of  affairs.  The  iron  men  of  Penn 
sylvania  should  join  instantly  with  the  shipping  and  commercial  interests, 
and  let  the  ports  be  open  to  English  iron,  but  let  the  ship-builders  have 
the  choice  to  use  American  iron.  And  if  they  used  American  iron,  let 
them  have  a  drawback  equal  to  the  duty  on  English  iron. 

Mr.  MORRELL.  That  is  all  that  the  iron  men  have  asked. 

Mr.  SMITH.  That  is  all  we  want.  We  certainly  would  use  American 
iron,  and  the  incidental  demand  for  American  iron  would  be  very  great. 
The  government  would  certainly  lose  nothing  by  it ;  for  it  is  getting  no 
revenue  to-day  from  ship-building  iron.  The  western  interest  would  be 
benefited  by  it,  because  the  ship  is  the  continuation  of  the  western  lines 
of  railroad  around  the  globe. 

The  committee  adjourned  to  meet  in  Portland  on  the  21st  of  October. 

PORTLAND,  October  21, 1869. 

The  committee  met  in  the  collector's  room  in  the  custom-house. 

Present:  The  chairman  and  Messrs.  Morrell,  Buffinton,  Wells,  and 
Calkin. 

Captain  WASHINGTON  RYAN  submitted  his  views  to  the  committee. 
He  said  that  he  had  noticed  newspaper  reports  of  the  statements  made 
before  the  committee,  and  he  agreed  with  most  of  them.  There  was  another 
thing, however,  which  he  thought  tended  to  the  depression  of  our  com 
merce,  and  which  he  had  not  seen  touched  upon.  That  was  the  deterio 
ration  of  the  men  who  sail  American  ships.  He  thought  that  they  had 
been  in  the  down-hill  road  for  some  years  from  one  end  of  the  ship  to 
the  other — masters,  officers,  and  crew.  He  thought  that  that  was  owing 
in  a  great  measure  to  the  apathy  of  the  ship-owning  interests,  or  perhaps 
to  the  want  of  public  spirit.  He  had  never  known  any  ship-owner  who 
seemed  to  him  to  take  any  interest  in  improving  the  condition  of  the 
men  who  sailed  his  ships.  He  thought  that  the  American  merchant 
marine  law,  if  there  was  such  a  law,  needed  a  thorough  and  complete 
revision.  In  fact,  he  might  say  that  there  was  no  mercantile  marine 
law  in  this  country.  Masters  and  officers  of  ships  came  up  like  Topsies. 
There  was  no  board  of  examination,  and  nobody  knew  whether  an  officer, 
when  he  came  on  board  a  ship,  could  determine  the  latitude  and  longi 
tude  of  a  ship  by  meridian  observation.  There  was  what  is  called  a 
Ship-masters7  Association  in  New  York,  which  gave  certificates  to  officers, 
but  did  so  without  making  any  examination.  He  considered  an  associ 
ation  like  that  an  absolute  and  positive  injury  to  the  shipping  interest, 
because  it  encouraged  a  bad  state  of  things.  And  it  was  astonishing  to 
hitn  that  the  underwriters  of  New  York  would  take  a  risk  at  one-half 
per  cent,  less  on  the  strength  of  a  certificate  from  such  an  association. 
He  favored  such  a  revision  of  the  mercantile  marine  law  as  had  been 
proposed  in  the  Senate  of  the  United  States  by  Mr.  Fish,  of  New  York, 
in  1853.  He  thought  that,  had  that  bill  become  a  law,  it  would  have 
produced  a  very  different  state  of  thin  gs.  As  it  was,  respectably  brought 
up  young  men,  who  might  have  imbibed  a  passion  for  the  sea,  went  now 
for  a  voyage  or  two,  and  became  so  disgusted  with  the  business  that 


NAVIGATION   INTERESTS.  127 

ttiey  invariably  quitted  it.  He  thought  that  the  navigation  laws  of 
England  and  of  the  southern  European  nations  was  such  as  to  keep 
their  best  men  in  their  own  navies,  leaving  only  the  refuse  to  American 
ships.  The  consequence  was  that  the  sailors  on  board  American  ships 
were,  in  a  great  measure,  the  refuse  of  the  maritime  nations  of  Europe. 
He  approved  of  the  government  shipping  offices  that  were  to  be  found 
in  every  seaport  in  England.  Sailors  were  shipped  arid  paid  off  in  those 
offices.  The  names  of  the  sailors  shipped  there  were  kept  upon  the  reg 
istry  with  memoranda  of  their  characters;  so  that  unless  a  sailor  had  a 
good  character  he  could  not  get  employment  at  one  of  those  offices. 

The  CHAIRMAN.  Do  I  understand  you  to  say  that  the  character  of 
American  seamen  is  below  that  of  the  seamen  of  Great  Britain? 

Mr.  EYAN.  No,  sir ;  I  do  not  mean  to  say  that ;  but  we  were  so  far 
above  them  years  ago,  that  we  had  some  room  to  fall  and  still  to  be  fully 
equal  to  them. 

The  CHAIRMAN.  Do  you  mean  to  say  that  American  seamen  have  dete 
riorated,  and  are  not  as  good  as  they  were  formerly  ? 

Mr.  EYAN.  Yes  j  and  the  causes  of  the  deterioration  are  going  on  every 
year. 

The  CHAIRMAN.  How  is  it  with  the  English  sailors  ?  Are  they  im 
proving  ? 

Mr.  EYAN.  I  should  judge  so.  I  should  judge  that  the  inevitable 
consequences  of  the  shipping  act,  which  has  not  been  long  in  operation, 
must  be  to  keep  their  best  men  for  their  own  ships,  and  to  send  off  the 
refuse. 

The  CHAIRMAN.  How  is  it  with  the  officers?  How  do  they  compare 
with  our  officers  ? 

Mr.  EYAN.  Our  officers  compare  favorably  with  them,  and  perhaps 
they  always  will  j  but  I  do  not  think  they  are  what  they  were  some 
years  ago. 

Mr.  CALKIN.  I  understood  you  to  say  that  it  is  no  great  credit  to  a 
captain  to  procure  a  certificate  from  the  Ship-masters'  Association  of 
New  York. 

Mr.  EYAN.  No,  sir.  The  last  application  that  we  had  from  a  captain, 
lie  was  told  by  the  chartering  party  that  he  was  required  to  have  a 
certificate  from  the  Ship-masters'  Association  of  New  York,  and  his  ex 
clamation  was, li  Humbug !  I  have  been  a  master  for  ten  or  a  dozen  years, 
and  I  have  gone  along  safely.  What  is  the  use  of  one  of  those  things?" 

Mr.  WELLS.  Are  not  these  certificates  given  under  oath  ? 

Mr.  EYAN.  No.  sir. 

Mr.  WELLS.  Well,  what  harm  can  it  be  to  have  a  certificate  ? 

Mr.  EYAN.  The  harm  lies  in  this:  that  that  board  is  presumed  to  be 
a  duly  constituted  and  properly  qualified  board  of  examiners,  and  so 
long  as  it  is  in  existence  it  tends  to  prevent  the  formation  of  a  proper 
board,  which  should  be  under  the  authority  of  the  government. 

Mr.  WELLS.  How  long  have  you  been  a  ship-owner  ? 

Mr.  EYAN.  I  was  a  sailor  for  twenty-eight  years,  and  twenty  years  of 
that  time  I  was  a  master.  I  have  been  on  shore  for  the  last  fifteen  years; 
but  I  have  been  interested  more  or  less  in  vessels  since  1853. 

Mr.  WELLS.  Are  you  familiar  with  commerce  ? 

Mr.  EYAN.  Yes,  sir. 

Mr.  WELLS.  I  understood  you  to  say  that,  in  your  opinion,  the  grade 
of  officers  and  men  employed  at  present  is  not  up  to  the  same  standard 
as  it  was  some  years  ago. 

Mr.  EYAN.  I  do  not  think  it  is. 


128  NAVIGATION   INTERESTS. 

Mr.  WELLS.  Is  it  your  opinion  that  that  is  one  of  the  causes  of  the 
depression  in  our  commerce  ? 

Mr.  EYAN.  Yes,  sir ;  my  opinion  is  that  that  is  one  of  the  causes  of  the 
depression  in  our  commerce.  Take  the  matter  of  insurance.  The  pre 
mium  of  insurance  has  increased  thirty  per  cent,  within  twenty  years 
back,  and  I  think  it  is  mainly  due  to  that  cause. 

Mr.  MORRELL.  Are  not  vessels  that  are  running  with  American  crews 
insured  as  cheaply  as  other  vessels  1 

Mr.  EYAN.  I  think  so. 

Mr.  MORRELL.  Were  American  vessels  formerly  insured  at  less  rates 
at  corresponding  times?  • 

Mr.  KYAN.  Yes. 

Mr.  MORRELL.  What  legislation  would  you  recommend  to  encourage 
the  building  up  of  a  better  class  of  seamen? 

Mr.  EYAN.  I  would  recommend  a  thorough  revision  of  the  mercantile 
marine  law  by  practical  men.  I  would  have  sailors  shipped  in  every 
considerable  port  in  the  country  by  a  government  shipping  officer.  J 
would  have  the  men  mustered  under  the  eye  of  that  government  officer 
on  board  the  ship,  before  she  proceeds  to  sea.  These  details  are  carried 
out  fully  in  the  bill  introduced  by  Mr.  Fish,  to  which  I  have  already 
referred.  On  every  vessel  bound  on  a  foreign  voyage  I  would  require 
that  there  should  be  an  examining  surgeon,  and  that  every  one  of  those 
men  shoulcl  be  examined,  as  men  are  examined  in  the  navy  before  they 
go  to  sea.  Our  ships  go  to  sea  with  the  least  possible  number  of  men, 
and  if  one  of  the  men  becomes  sick  or  disabled  it  affects  all  the  rest.  I 
would  have  the  men  paid  off  at  the  government  office  when  the  ship 
returns,  as  is  the  custom  in  England.  I  think  that  that  is  the  only  way 
to  break  up  the  sailor  landlord  system,  which  is  the  curse  of  our  mer 
cantile  marine.  I  would  have  this  board  of  examiners  appointed  by  the 
government,  and  every  application  for  the  position  of  master  or  first  or 
second  officer  examined  by  that  board,  and  then,  when  the  vessel  returned 
from  sea,  I  would  have  the  ship  paid  off  at  that  government  shipping 
office,  and  every  man's  character  recorded — whether  there  was  any 
trouble  on  board  the  vessel,  any  fighting,  quarreling,  &c. 

Mr.  CALKIN.  In  other  words,  you  would  have  a  government  espionage 
on  the  mercantile  marine  of  the  country  f 

Mr.  EYAN.  Call  it  espionage  or  what  not,  I  would  have  the  same  kind 
of  a  court  as  they  have  in  England,  before  which  cases  of  collisions,  &c., 
are  tried — such  a  court  as  that  of  Dr.  Lushington  in  London,  assisted 
by  two  experienced  naval  officers. 

Mr.  CALKIN.  Would  you  have  that  only  for  the  foreign  trade,  or  to 
cover  our  coastwise  trade  also  ? 

Mr.  EYAN.  I  would  have  it  for  every  case  occurring  on  board  a  vessel, 
and  for  this  reason,  that  discipline  is  necessary,  and  that  it  cannot  be 
maintained  by  bringing  those  cases  before  the  civil  courts. 

Mr.  MORRELL.  Do  you  not  think  that  our  whaling  business  of  former 
times  contributed  to  build  up  a  better  class  of  seamen  by  the  co-operative 
system  of  paying  the  seamen  and  officers  a  percentage  on  the  profits  of 
the  voyage? 

Mr.  EYAN.  Yes,  sir. 

Mr.  BUFFINTON.  That  system  is  carried  on  to-day  in  the  whale-oil 
trade? 

Mr.  EYAN.  Yes;  but  there  are  not  so  many  whalemen  as  there  used  to 
be,  and  consequently  there  are  not  so  many  seamen  drawn  to  the  ocean 
by  that  business.  I  think  the  principle  is  a  correct  one,  and  the  tend 
ency  would  be  certainly  to  improve  the  class  of  seamen. 


NAVIGATION   INTERESTS.  129 

,Mr.  CALKIN.  Are  not  many  of  the  captains  now  in  our  foreign  trade 
and  in  our  immense  coasting  trade  interested  in  their  vessels  ? 

Mr.  KYAN.  A  great  many  of  them  are — probably  more  than  half  o 
them. 

Mr.  CALKIN.  Does  not  that  have  a  tendency  to  make  them  more  dih 
gent  and  vigilant  in  their  business? 

Mr.  EYAN.  Certainly.  That  is  the  only  reason  why  the  owners  of  ves 
sels  require  masters  to  have  an  interest.  But  at  the  same  time  there  is 
a  disposition,  especially  in  certain  ports  of  Massachusetts,  not  to  permit 
masters  to  have  an  interest  in  their  vessels,  but  to  manage  the  vessels 
by  merchants  and  agents  at  each  end  of  the  route,  the  master  being 
merely  the  navigator.  I  am  told  that  that  is  becoming  more  and  more 
common,  except  down  on  the  Cape. 

Mr.  CALKIN.  When  you  spoke  of  the  depression  of  our  commerce 
being  the  foult  of  the  sailor,  did  you  intend  to  apply  that  to  the  coasting 
trade? 

Mr.  KYAN.  It  has  its  effect  upon  all  branches  of  trade. 

Mr.  CALKIN.  But  our  coasting  trade  has  increased  ? 

Mr.  EYAN.  Yes;  but  the  same  men  who  maybe  on  an  East  Indiaman 
one  voyage  may  be  in  the  coasting  trade  the  next  voyage. 

Mr.  MORRELL.  Do  you  not  think  that  the  building  up  of  these  exten 
sive  lines  of  foreign  steamers,  principally  owned  by  foreigners,  having 
their  agencies  at  both  ends  of  the  route,  was  calculated  to  interfere  very 
much  with  the  ordinary  American  commerce,  and  that  the  tendency  is 
to  force  the  business  into  these  channels,  and  to  deprive  the  individual 
ship-owner  of  getting  his  ordinary  share  of  business? 

Mr.  EYAN.  Freight  will  go  where  it  can  be  carried  cheapest.  If  these 
great  lines  can  carry  freight  more  expeditiously  and  more  cheaply  than 
single  ships,  whether  propelled  by  steam  or  sail,  I  suppose  that  freight 
will  go  there,  and  thus  co-operation  thoroughly  organized  and  well 
managed  may,  I  suppose,  monopolize  the  greater  part  of  the  trade. 

Mr.  CALKIN.  What  is  the  sentiment  in  Portland  in  reference  to  the 
navigation  laws  ?  Are  you  in  favor  of  repealing  the  navigation  laws? 

Mr.  EYAN.  No,  sir. 

Mr.  CALKIN.  Are  you  in  favor  of  Congress  passing  a  law  allowing  a 
drawback  or  bounty  to  the  ship-building  interest? 

Mr.  EYAN.  I  am. 

Mr.  WELLS.  Are  you  in  favor  of  repealing  the  navigation  law,  of  allow 
ing  a  drawback  on  the  materials  used  in  ship-building,  and  at  the  same 
time  of  retaining  the  coast  wise  trade  exclusively  for  American-built  ves 
sels?  What  effect  would  those  three  measures,  taken  together,  have 
upon  the  commercial  and  ship-building  interests  of  the  country? 

Mr.  EYAN.  I  do  not  know  whether  one  of  those  measures  would  offset 
the  other.  The  benefit  that  would  be  derived  from  the  remission  of 
duties  on  the  materials  entering  into  the  construction  of  ships  would 
be  offset  by  the  privilege  given  to  our  merchants  to  buy  foreign-built 
ships. 

Mr.  BUFFINTON.  Suppose  that  there  were  nothing  done  excepting  to 
allow  a  drawback  upon  the  materials  going  into  the  manufacture  of  a 
ship,  do  you  believe  then  that  there  would  be  an  increase  of  ship-build 
ing,  or  that  the  American  ship-builders  would  be  able  to  compete  with 
foreign  ship-builders,  taking  into  view  the  whole  state  of  the  country  at 
present,  the  capital  invested  in  other  business,  and  the  interest  that  is 
received  from  that  capital  ? 

Mr.  EYAN.  I  am  satisfied  that  the  ship-building  and  commerce  of  the 
country  would  be  increased. 

9NI 


130  NAVIGATION   INTERESTS. 

Mr.  BUFFINTON.  But  if  the  navigation  laws  were  repealed  you  think 
that  that  would  offset  the  drawback? 

Mr.  RYAN.  So  it  seems  to  me,  so  far  as  I  have  given  the  subject 
thought. 

The  CHAIRMAN.  You  gave  it  as  your  opinion  that  our  sailors  and  offi 
cers  have  deteriorated,  and  that  the  character  of  foreign  officers  and  sea 
men  has  improved.  Do  you  believe  that  that  is  the  cause  or  the  effect 
of  the  decline  in  our  ship-building  interest? 

Mr.  EYAN.  I  think  it  is  probably  the  cause.  I  think  that  the  advance 
in  the  rates  of  insurance  may  be  traced  more  directly  to  that  than  to  any 
other  cause.  James  Brown,  a  well-known  Liverpool  merchant,  a  man 
to  whom  I  used  to  apply  for  advice  when  I  was  in  the  Liverpool  trade, 
remarked  to  Captain  Schofield  of  Brunswick  six  years  ago,  u  You  Amer 
ican  masters  are  not  what  you  were  in  years  past.  You  are  going  down 
every  year ;  I  can  see  that  plainly."  I  think  that  one  reason  of  it  is 
owing  to  ship-owners  crowding  down  the  rates  of  wages  to  masters. 

Mr.  CALKIN.  You  are  not  an  old  resident  of  Portland? 

Mr.  EYAN.  I  have  been  here  fifteen  years. 

Mr.  CALKIN.  In  case  Congress  passed  a  law  allowing  a  drawback  on 
the  materials  used  in  the  construction  of  ships,  so  that  iron  steamships 
might  be  built  in  this  country  for  the  European  trade,  and  also  allowing 
them  a  fair  subsidy,  somewhat  in  keeping  with  the  subsidies  allowed  by 
the  English  government,  do  you  think  that  you  could  support  an  Amer 
ican  line  of  steamers  from  this  port,  running,  say,  monthly  at  first,  and 
getting  down  to  weekly? 

Mr.  EYAN.  I  do  not  think  we  could ;  but  when  we  come  to  get  our 
railroad  completed,  connecting  us  with  the  West  byway  of  Ogdensburg, 
I  think  we  can  do  it. 

Mr.  MORRELL.  Do  you  think  that  a  line  of  steamers  across  the  ocean 
could  be  supported  depending  chiefly  upon  passengers  and  mail  service 
for  its  business? 

Mr.  EYAN.  I  have  no  knowledge  of  the  management  of  steam  lines, 
and  I  have  not  sufficient  information  to  answer  your  question. 

Mr.  JOSEPH  W.  DYER,  ship-builder,  submitted  his  views  to  the  committee. 
He  said  he  had  no  doubt  but  that  the  ship-building  interest  would  be 
revived  by  the  exemption  from  duty  of  the  articles  entering  into  the 
construction  of  ships.  He  thought  that  then  ships  could  be  built  in 
this  country  as  cheaply  as  they  are  built  in  Europe. 

The  CHAIRMAN.  What  rates  of  wages  do  you  pay  now  to  ship-carpen 
ters  ? 

Mr.  DYER.  From  two  dollars  and  fifty  cents  to  three  dollars  a  day. 

The  CHAIRMAN.  What  were  the  average  rates  of  wages  from  1852  to 
1860? 

Mr.  DYER.  From  one  dollar  and  fifty  cents  to  one  dollar  and  seventy- 
five  cents  and  two  dollars  a  day. 

The  CHAIRMAN.  Were  your  wages  as  low  as  that  in  1854, 1855  ? 

Mr.  DYER.  Yes,  sir ;  they  were  two  dollars  a  day.  We  now  pay  three 
dollars  for  first-class  carpenters. 

The  CHAIRMAN.  The  advance  is  about  fifty  per  cent. 

Mr.  DYER.  Yes,  sir. 

The  CHAIRMAN.  Do  you  think  that  the  difference  in  the  cost  of  labor 
between  here  and  Europe  would  not  prevent  your  building  ships  here  as 
cheaply  as  they  are  built  in  Europe  ? 

Mr.  DYER.  No,  sir  ;  we  should  not  ask  any  odds  there.  I  think  that 
our  mechanics  are  sufficiently  better  than  theirs  to  make  up  that 
difference. 


NAVIGATION    INTERESTS.  131 

The  CHAIRMAN.  You  tliink  that  you  get  as  much  work  for  the  money 
you  pay  as  they  get  ? 

Mr.  DYER.  That  is  my  opinion.  That  has  been  my  experience  all 
through  life. 

The  CHAIRMAN.  Have  you  built  ships  recently? 

Mr.  DYER.  Not  very  recently.  I  have  built  some  small  vessels  within 
the  year.  In  the  course  of  the  war  1  built  two.  Previous  to  that  1 
built  one  or  two  ships  a  year. 

The  CHAIRMAN,  Do  you  know  what  the  difference  would  be  in  the 
cost  of  a  thousand-ton  ship  between  the  present  time  and  what  it  was 
from  1852  to  1860 1 

Mr.  DYER.  Previous  to  the  war  we  could  build  a  thousand-ton  ship, 
first-class,  at  from  fifty-five  to  sixty  dollars  a  ton,  and  since  then  from 
seventy-five  to  eighty  dollars. 

Mr.  MORRELL.  Does  that  increase  consist  chiefly  in  the  enhanced  cost 
of  labor  or  of  materials  ? 

Mr.  DYER.  There  is  something  of  it  in  the  labor,  of  course.  The  cost 
of  labor  on  a  ship  will  probably  reach  from  seven  thousand  to  eight 
thousand  dollars. 

The  CHAIRMAN.  I  understood  you  to  say  that  vessels  which  cost  sixty 
dollars  a  ton  before  the  war  cost  seventy-five  dollars  now  ? 

Mr.  DYER.  Yes,  sir ;  from  seventy -five  to  eighty  dollars. 

The  CHAIRMAN.  So  that,  making  an  allowance  for  the  difference  be 
tween  gold  and  currency,  vessels  can  be  built  as  cheaply  now  as  before 
the  war  f 

Mr.  DYER.  About  the  same. 

The  CHAIRMAN.  A  vessel  all  fitted  out  for  sea  costs  no  more  at  present 
than  seventy-five  dollars  a  ton  ? 

Mr.  DYER.  From  seventy-five  to  eighty  dollars. 

The  CHAIRMAN.  What  effect  do  you  think  it  would  have  upon  the 
ship-building  interest  of  the  country  to  exempt  from  duty  the  materials 
entering  into  the  construction  of  ships  and  at  the  same  time  to  admit 
foreign-built  ships  to  American  registration "? 

Mr.  DYER.  I  do  not  think  the  effect  would  be  very  good. 

The  CHAIRMAN.  Do  you  think  that  the  ship-building  interest  could 
be  revived  under  that  system  ? 

Mr.  DYER.  I  think  that  if  you  allow  foreign  ships  to  come  in  here  and 
obtain  American  registration  you  cannot  revive  our  ship-building  interest. 

The  CHAIRMAN.  Do  you  think  that  the  ship-building  interest  could  be 
revived  if  these  two  measures  were  passed  at  the  same  time  ? 

Mr.  DYER.  I  do  not. 

Mr.  WELLS.  I  understood  you  to  say  that  by  a  remission  of  the  duty 
on  the  materials  you  can  build  a  ship  now  as  cheaply  as  you  could 
before  the  war  ? 

Mr.  DYER.  No,  sir ;  there  is  an  increase  in  the  price  of  labor. 

Mr.  MORRELL.  You  are  speaking  of  wooden  ships  now  ? 

Mr.  DYER.  Yes,  sir. 

Mr.  WELLS.  What  would  be  the  amount  of  saving  per  ton  in  the 
building  of  a  ship  by  the  remission  of  duty  on  the  materials  I 

Mr.  DYER.  I  never  went  into  any  calculation  of  that  kind.  I  know 
what  it  costs  us  to  build  a  vessel  and  what  it  cost  us  before  the  war. 

Mr.  WELLS.  What  would  be  the  advantage  of  the  remission  of  the 
duty? 

Mr.  DYER.  We  could  build  so  much  the  cheaper. 

Mr.  WELLS.  But  you  could  not  build  as  cheaply  as  they  do  in 
England  $ 


132  NAVIGATION    INTERESTS.      . 

Mr.  DYER.  Probably  not.  We  never  could.  Still  we  competed  with 
them  successfully.  We  considered  our  vessels  much  better  than  theirs. 

Mr.  WELLS.  If  you  cannot  build  as  cheaply  as  they,  do  you  not  think 
that  American  merchants  will  buy  their  ships  abroad  f 

Mr.  DYER.  Perhaps  some  will  if  they  can  buy  them  at  five  dollars  a 
ton  less. 

Mr.  WELLS.  Then  what  would  be  the  advantage  to  the  ship-b.uilding 
interest  to  have  a  remission  of  the  duty  if  they  cannot  then  compete 
with  ships  built  in  other  countries  f 

Mr.  DYER!  We  can  compete  with  them  if  the  navigation  laws  are  not 
repealed.  So  far  as  my  knowledge  goes  our  laboring  men  are  many 
times  better  than  theirs.  We  make  better  ships  here  and  have  better 
materials.  The  quality  of  materials  that  enter  into  ships  here  and  in 
the  provinces  is  very  different. 

The  CHAIRMAN.  I  understood  you  to  say  that  you  thought  you  did 
not  pay  any  higher  for  the  amount  of  service  you  obtained  than  is  paid 
abroad  ? 

Mr.  DYER.  Yes,  sir. 

The  CHAIRMAN.  So  that  there  really  is  no  difference  in  the  cost  of 
labor  ? 

Mr.  DYER.  I  do  not  think  there  is. 

Mr.  CALKIN.  In  case  there  is  nothing  done  to  relieve  the  shipping 
interest  what  effect  is  it  going  to  have  within  the  next  five  or  ten  years 
upon  the  mechanical  labor  connected  with  ship-building  ? 

Mr.  DYER.  There  is  no  other  course  for  the  mechanics  except  to  go 
out  of  the  country  or  leave  the  business. 

Mr.  CALKIN.  Are  there  as  many  ship-carpenters  to-day  in  Maine  as 
there  were  previous  to  the  war  ? 

Mr.  DYER.  No,  sir ;  there  are  not. 

Mr.  CALKIN.  How  many  hours  a  day  do  your  mechanics  work  here  ? 

Mr.  DYER.  Ten  hours  a  day. 

Mr.  CALKIN.  Is  there  any  difficulty  in  getting  them  to  work  ten 
hoars  ? 

Mr.  DYER.  None  at  all. 

Mr.  CALKIN.  Can  you  easily  make  a  ship-carpenter  out  of  a  house- 
carpenter,  or  out  of  a  wood- worker  of  any  kind? 

Mr.  DYER.  I  should  prefer  to  get  a  green  hand  and  make  a  ship-car 
penter  out  of  him. 

Mr.  BUFFINTON.  I  think  you  did  not  fully  understand  a  question  put 
to  you  by  the  chairman.  I  understood  the  chairman  to  ask  you  whether, 
if  our  currency  was  equal  to  gold,  you  could  build  a  ship  as  cheaply  now 
as  you  could  before  the  war,  and  I  think  you  answered,  yes. 

Mr.  DYER.  I  did  not  mean  to. 

The  CHAIRMAN.  The  difference  that  you  give  between  the  present  cost 
of  a  ship  in  currency  and  the  cost  of  a  ship  before  the  war,  which  was  in 
gold,  is  only  about  the  percentage  of  the  difference  between  gold  and 
currency  ? 

Mr.  DYER.  From  fifty-five  to  sixty  dollars  before  the  war,  and  from 
seventy-five  to  eighty  dollars  now. 

The  CHAIRMAN.  That  would  be  in  the  neighborhood  of  thirty  per 
cent,  advance. 

Mr.  DYER.  Yes,  sir. 

The  On  AIRMAN.  Well,  as  there  is  now  a  difference  of  thirty  per  cent, 
betweeen  gold  and  currency,  that  would  be  the  only  difference  in  the 
cost  of  a  ship  between  now  and  before  the  war.  In  point  of  fact,  the 


NAVIGATION   INTERESTS.  133 

answer  you  gave  would  have  that  result;'  so  that  you  build  a  ship  to-day, 
according  to  that  statement,  as  cheaply  in  gold  as  you  did  then  f 

Mr.  DYER.  Yes,  provided  we  have  the  drawback.  What  I  mean  to 
say  is  that  if  this  drawback  were  allowed  us  we  could  build  a  vessel  as 
cheap  as  we  ever  did. 

Mr.  WELLS.  If  you  have  the  drawback  and  the  gold  currency  as  you 
had  previous  to  the  war,  do  you  think  you  would  have  any  market  for 
your  ships,  after  you  had  them  built  ? 

Mr.  DYER.  I  think  we  would  have  the  same  market  that  we  always 
had. 

Mr.  WELLS.  Previous  to  the  war  you  had  no  steamers  to  compete 
with  you  in  the  domestic  trade,  and  our  foreign  commerce  was  more 
extensive ;  the  products  of  this  country  were  carried  to  foreign  countries^ 
which  is  not  the  case  now. 

Mr.  DYER.  Not  now ;  but  I  trust  they  will  be. 

The  CHAIRMAN.  What  has  been  the  practice  usually  in  reference  te 
the  coppering  of  vessels  built  in  the  United  States  "2  Has  it  been  done 
in  this  country  or  in  Europe  ? 

Mr.  DYER.  Of  late  years  vessels  go  to  the  other  side  to  copper. 

The  CHAIRMAN.  What  is  the  common  practice  in  building  a  vessel 
here  ?  Is  the  coppering  done  here  1 

Mr.  DYER.  No,  sir.  With  a  iiew  vessel  it  is  generally  preferred  that 
she  should  make  a  voyage  first,  except  she  is  going  a  long  vogage,  such 
as  to  the  Pacific.  In  that  case  they  copper  her  here ;  but  if  a  vessel  is 
going  into  the  southern  trade  and  then  to  Liverpool  or  France,  they 
do  not  copper  her  until  they  get  on  the  other  side,  where  it  is  cheaper. 

The  CHAIRMAN.  When  you  speak  of  the  cost  of  a  vessel  you  mean 
her  cost  fitted  out  for  sea  without  coppering  ? 

Mr.  DYER.  Yes,  sir. 

Captain  CHARLES  M.  DAVIS  submitted  his  views  to  the  committee.  He 
said  that  he  disagreed  somewhat  with  his  friend  Captain  Ryan  about 
the  trouble  in  the  depression  of  American  commerce.  He  thought  that 
it  was  necessary  to  go  further  back  than  Captain  Kyan  did  to  get  at  the 
bottom  of  the  trouble.  They  had  got  no  ships  now,  comparatively 
speaking,  with  which  to  make  sailors.  American  ships  had  almost 
disappeared  from  the  ocean,  and  for  very  obvious  reasons.  During  the 
late  war  the  pirates  destroyed  many  American  ships,  and  many  were 
transferred  to  foreign  flags.  Shipping  would  have  to  be  brought  back 
and  then  discipline  would  follow.  If  the  United  States  had  shipping 
equal  to  that  of  England  or  France,  he  would  guarantee  that  American 
ship-masters  could  compete  with  the  French  or  the  English  in  discipline 
and  in  the  sailing  of  their  ships.  He  had  yet  to  learn  that  American 
ship-masters  did  not  take  as  good  care  of  their  ships  and  did  not  make 
as  good  passages  as  any  foreign  ship-masters.  American  ships  used  to 
be  preferred  to  foreign  ships  in  the  carrying  trade.  American  shipping 
must  be  built  up,  and  in  order  to  do  that  the  ship-builders  must  have 
something  to  help  them  or  else  they  could  not  compete  with  foreign 
ship-builders.  He  had  letters  in  his  pocket,  which  he  had  received 
lately  from  Quebec  and  from  St.  John,  showing  that  he  could  buy  ships 
there — first-class  ships  of  a  thousand  tons — at  from  thirty-seven  thou 
sand  to  thirty-eight  thousand  dollars  in  gold,  all  fitted  out  for  sea.  Add 
ing  thirty  per  cent,  to  that  price  for  the  difference  between  gold  and 
currency,  would  make  their  cost  in  the  neighborhood  of  fifty  dollars  per 
ton  in  currency.  They  built  pretty  good  ships  in  Quebec — rather  better 
than  in  St.  John.  They  had  oak  and  hackmatack  there  and  they  built 
good  ships.  Ship-builders  on  this  side  could  not  compete  with  them  in 


134  NAVIGATION   INTERESTS. 

price.  Mr.  (Dyer  had  said  that  a  thousand-ton  ship  at  present  woulc 
cost  seventy-five  dollars  a  ton.  He  could  buy  such  a  ship  to-day  in 
Quebec  for  fifty  dollars  a  ton.  That  was  a  great  difference;  but  ho 
thought  that  if  American  ship-builders  could  have  the  advantage  of  a 
remission  of  duty  on  the  materials  used  in  the  construction  of  ships,  and 
if  ship-owners  could  get  their  outfits  out  of  bond  free  of  duty,  as  they 
did  in  England  and  France,  American  ship-builders  and  ship-owners 
could  compete  with  the  world,  provided  that  there  was  business  for  them. 
There  was  a  change  in  the  freighting  business.  Steamers  were  taking 
the  place  of  sailing-vessels.  These  latter  only  got  heavy  cargoes  to 
carry,  such  as  tobacco,  coal,  salt,  &c.  Only  let  American  ships  be  built 
as  cheaply  as  the  ships  of  other  nations,  and  American  ship-owners 
would  ask  no  odds. 

The  CHAIRMAN.  Would  we  labor  under  any  greater  disadvantages 
now  than  we  did  prior  to  the  war,  provided  the  materials  entering 
into  the  construction  of  ships  were  admitted  free  of  duty  ?  Could  we 
then  as  successfully  compete  with  foreigners  on  a  gold  basis  as  we  did 
before  the  war  ? 

Mr.  DAVIS.  I  do  not  know  why  we  should  not,  if  business  was  the 
same. 

The  CHAIRMAN.  Were  there  not  always  these  periods  of  depression 
in  the  shipping  business  prior  to  the  war,  some  years  prosperous  and 
some  unprosperous J? 

Mr.  DAVIS.  Yes,  sir ;  some  years  we  could  not  run  our  ships  except 
at  a  loss,  and  then  again  the  business  would  revive,  and  we  would  make 
money. 

The  CHAIRMAN.  That  business  is  not  so  regular  and  steady  as  other 
branches  of  business  ? 

Mr.  DAVIS.  No,  sir  ;  it  is  dependent  upon  the  crops  and  upon  a  great 
many  other  things,  on  which  other  branches  of  business  are  not  depend 
ent.  I  take  it  that  if  you  will  give  us  a  fair  chance,  we  will  build  our 
commerce  up  again,  and  I  think  that  when  it  is  built  up  discipline  will 
follow.  I  do  not  think  that  we  can  undertake  to  have  discipline  when 
we  have  no  ships.  As  for  our  ship-masters,  there  is  a  change  in  them 
as  there  is  in  every  profession,  and  in  all  classes,  ministers,  lawyers,  doc 
tors,  &c. 

Mr.  BUFFINTON.  Are  you  acquainted  with  Cape  Cod  ? 

Mr.  DAVIS.  Not  on  shore. 

Mr.  BUFFINTON.  The  tonnage  of  Cape  Cod  is  far  greater  than  it  was 
formerly,  and  I  want  to  ask  you  if  you  think  that  the  seamen  of  Cape 
Cod  have  deteriorated  at  all,  and  if  ship-owners  have  not  seen  that 
while  the  interest  has  kept  up,  the  seamen  have  kept  up  ? 

Mr.  DAVIS.  I  think  so. 

Mr.  BUFFINTON.  I  think  that  if  you  go  to  Cape  Cod  you  will  find  as 
good  captains  and  seamen  there  as  ever  were  there. 

Mr.  DAVIS.  Yes,  sir ;  that  is  true.  When  the  interest  is  kept  up  you 
will  find  no  deterioration  in  the  officers  and  men. 

The  CHAIRMAN.  You  are  considerably  acquainted  with  the  business 
on  the  other  side  of  the  water  ? 

Mr.  DAVIS.  I  am  conversant  with  it. 

The  CHAIRMAN.  What  do  you  know  about  the  business  of  building 
ships  upon  the  Clyde  and  Tyiie  ?  what  is  the  condition  of  the  ship-build 
ing  business  there  ? 

Mr.  DAVIS.  I  can  give  you  the  price  of  first-class  iron  ships  at  Glas 
gow.  First-class  iron  ships  of  a  thousand  tons  fitted  for  sea,  and  rated 
for  twenty  years,  can  be  had  at  fourteen  pounds  ten  shillings  per  ton.  I 


NAVIGATION   INTERESTS.  135 

present  to  the  committee  the  specifications  and  some  letters  on  the  sub 
ject.  [The  letters  are  attached  to  Mr.  Davis's  statement.]  There  is  no 
use  in  talking  of  a  demand  for  ships  this  year  j  there  is  no  demand  for 
ships.  It  is  pretty  hard  to  charter  a  ship  for  a  long*  voyage ;  but  that 
does  not  stop  the  building  of  ships  on  the  other  side,  because  there  will 
be  a  tlemand  for  ships.  Give  us  a  fair  chance  to  build  ships  and  to  run 
them  by  allowing  a  drawback  of  duty,  and  by  allowing  outfits  free  of 
duty,  and  we  cannot  be  driven  off  the  water. 

The  CHAIRMAN.  What  do  you  think  would  be  the  effect  of  such  modi 
fication  of  the  navigation  laws  as  to  admit  foreign-built  ships  to  Amer 
ican  registry  ? 

Mr.  DAVIS.  My  own  opinion  is  that  it  would  be  better  for  our  com 
merce.  Some  interests  would  not  be  benefited  by  it;  but  I  think  that, 
on  the  whole,  it  would  be  generally  benefited.  I  do  not  see  why,  if  I 
can  buy  a  ship  at  St.  John  for  fifteen  thousand  dollars  less  than  I  can 
buy  her  here,  I*  should  not  be  allowed  to  do  so.  What  difference  does 
it  make  to  the  government  when  I  am  going  to  sail  her  under  the  Amer 
ican  flag  ? 

The  CHAIRMAN.  Wliat  effect  would  that  have  on  the  ship-building  in 
terest  of  the  country  ? 

Mr.  DAVIS.  I  think  it  would  rather  head  them  off  a  little. 

Mr.  WTELLS.  I  infer  that  you  would  be  in  favor  of  repealing  the  navi 
gation  laws  and  letting  our  merchants  buy  ships  wherever  they  can  buy 
them,  cheapest J? 

Mr.  DAVIS.  Yes,  sir ;  that  is  my  opinion. 

Mr.  WELLS.  You  are  a  ship-owner  ? 

Mr.  DAVIS.  I  have  been  a  ship-owner.  I  have  been  retired  from  the 
business  for  some  time.  I  built  some  ships  and  owned  some.  I  have 
not  owned  any  ships  since  the  war. 

Mr.  WELLS.  What  did  you  have  to  pay  for  ships  of  a  thousand  tons 
previous  to  the  Avar  I 

Mr.  DAVIS.  They  cost  us  about  fifty  to  fifty-five  dollars  a  ton.  Before 
the  war  I  could  get  a  good  ship  fitted  out  with  a  single  suit  of  sails  for 
a  European  voyage  (not  for  the  East  Indian  voyage)  at  fifty-five  dollars 
a  ton. 

Mr.  WELLS.  The  same  class  of  ship  as  yon  can  get  at  Quebec  now  for 
thirty-eight  dollars  a  ton  ? 

Mr.  DAVIS.  I  think  rather  a  little  better. 

The  CHAIRMAN.  Do  you  believe  that  if  the  duties  were  taken  off  the 
materials  entering  into  the  construction  of  ships,  our  ship-builders  could 
compete  with  those  in  Europe  J? 

Mr.  DAVIS.  I  think  so. 

The  CHAIRMAN.  Do  you  believe  that  ships  could  be  built  here  as  fast 
as  the  demands  of  business  required  them  2  - 

Mr.  DAVIS.  Yes,  sir ;  no  doubt  of  it. 

The  CHAIRMAN.  Then  why  are  you  in  favor  of  the  admission  of  foreign- 
built  ships  to  American  registry  if  we  can  build  them  here  as  fast  and 
as  cheaply  I 

Mr.  DAVIS.  You  would  be  opening  a  larger  market  to  competition.  If 
you  do  not  the  ship-builders  will  put  their  prices  up. 

The  CHAIRMAN.  Will  not  competition  on  this  side  settle  that  as  well 
as  it  settles  other  business  "? 

Mr.  DAVIS.  Perhaps  it  may.  We  have  always  lived  under  our  home 
competition  and  done  very  well  by  it ;  but  I  would  rather  have  a  larger 
field  if  I  could  have  it. 

The  CHAIRMAN.  I  understood  you  to  say  that  if  we  should  do  that,  it 


136  NAVIGATION   INTERESTS. 

would  be  rather  bard  upon  ship-builders  here.    That  means,  I  suppose, 
that  they  could  not  build  ships  if  the  navigation  laws  were  repealed. 

Mr.  DAVIS.  I  do  not  think  it  would  go  to  that  extent.  I  think  the 
case  would  rather  level  itself.  I  do  not  see  why,  if  we  had  the  s?  me 
chances  to  build  a  ship  here  with  the  duties  off  all  the  materials,  we 
would  not  do  so  as  well  and  as  cheaply  as  they  do  on  the  other  side.  If 
we  can,  so  be  it ;  then  we  will  buy  our  ships  at  home;  but  it  we  can  buy 
them  cheaper  abroad,  I  would  prefer  to  be  at  liberty  to  do  so. 

The  CHAIRMAN.  What  would  be  the  effect  upon  the  general  interest 
of  the  country  of  allowing  that  ? 

Mr.  DAVIS.  I  think  it  would  be  better  for  the  whole  of  the  country. 

Mr.  CALKIN.  If  Congress  should  repeal  the  navigation  law  and  allow 
American  merchants  to  go  abroad  and  buy  their  ships,  and  at  the  same 
time  allow  a  drawback  to  the  builders  here,  do  you  think  that  the  build 
ers  here  could  live  and  compete  with  the  foreign  market  at  once,  and 
that  our  ship-building  interest  would  grow  up  side  by  side  with  the  ship 
building  interest  of  England  ? 

Mr.  DAVIS.  In  regard  to  wooden  ships  I  think  so ;  I  do  not  know  why 
it  should  not  be  so.  As  to  iron  ships  we  cannot  compete  with  the  Eng 
lish  in  ten  or  twenty  years.  We  cannot  learn  tolmild  ships  here  as  they 
do  on  the  Clyde.  I  do  not  think  that  we  can  compete  with  the  iron  ship 
building  interest  of  England  for  the  present;  I  think  we  can  compete 
with  them  in  wooden  ships. 

Mr.  CALKIN.  What  effect  would  it  have  to  repeal  the  navigation  law 
and  to  allow  a  drawback — what  effect  on  the  whole  general  interest  of 
the  country,  on  the  wealth  and  labor  of  the  country  ?  Would  it  advance 
or  deteriorate  it  ? 

Mr.  DAVIS.  I  think  it  would  advance  it.  It  would  give  us  a  stimulus 
and  a  life  which  we  have  not  seen  for  some  time. 

The  CHAIRMAN.  I  believe  you  have  stated  that  it  was  a  very  common 
practice  for  masters  of  vessels  to  be  interested  in  their  vessels.  Is  it 
also  a  very  common  practice  for  the  builders  of  vessels  to  be  interested 
as  owners  f 

Mr.  DAVIS.  Yes,  sir ;  here  in  our  State  it  has  been  always  so. 

The  CHAIRMAN.  What  would  be  the  tendency  of  building  ships  abroad 
and  bringing  them  here  ?  Would  it  be  to  create  a  foreign  interest  in  the 
vessels  and  to  build  up  a  really  foreign  interest  in  our  navigation?  While 
our  ships  were  nominally  American,  would  they  not  be  really  foreign  ? 

Mr.  DAVIS.  I  do  not  know  why  it  should  be  so.  If  I  want  to  buy  a  ship 
I  buy  her  and  run  her  for  my  own  purpose  and  under  my  own  flag ;  I  do 
not  know  why  there  should  be  any  foreign  interest  in  her. 

The  CHAIRMAN.  If  you  build  a  vessel  here  the  builder  has  generally 
an  interest  in  her.  Now  suppose  you  bought  your  ship  abroad,  would 
not  that  be  the  operation  of  the  thing — that  the  foreign  ship-builder 
would  retain  an  interest  in  her  ? 

Mr.  DAVIS.  I  should  not  think  so.  I  should  not  want  to  have  foreign 
ers  owning  with  me.  My  experience  and  observation  here  are  that  our 
folks  do  not  like  very  much  to  own  ships  with  foreigners. 

The  CHAIRMAN.  That  is  because  we  cannot  own  them  with  foreigners. 
But  suppose  that  condition  of  things  should  cease  t 

Mr.  DAVIS.  I  do  not  know  why  it  should  be  more  so  here  than  in 
France  or  Germany  or  other  places.  They  have  always  had  the  privilege 
of  buying  their  ships  abroad,  and  they  never  have  filled  up  their  com 
merce  with  American  ship-owners  or  British  ship-owners. 

The  CHAIRMAN.  Have  they  ever  really  been  in  the  condition  that  we 
are  in  ? 


NAVIGATION   INTERESTS.  137 

Mr.  DAVIS.  They  have  been  in  a  condition  that  they  can  buy  our  ships 
and  put  them  under  their  own  flag. 

The  CHAIRMAN.  Have  we  ever  had  4hat  advantage  over  them  that 
they  have  over  us  now  f 

Mr.  DAVIS.  No,  sir ;  I  do  not  think  so.  They  have  got  us  where  they 
can  handle  us  just  as  they  have  a  mind  to. 

Mr.  CALKIN.  Do  you  believe  that  it  is  the  policy  of  the  government  to 
encourage  iron  ship-building1? 

Mr.  DAVIS.  Kb,  sir ;  I  do  not.  think  so.  I  should  think  it  would  be 
costing  the  country  too  much  to  undertake  now  to  build  iron  ships  so  as 
to  compete  with  other  nations.  I  should  rather  husband  our  own  re 
sources  and  wait  until  we  get  stronger. 

Mr.  MORRELL.  You  believe  that  a  large  proportion  of  American  com 
merce  across  the  ocean  is  done  in  iron  ships  ? 

Mr.  DAVIS.    Yes,  sir. 

Mr.  MORRELL.  Then  are  you  prepared  to  surrender  that  ocean  com 
merce  entirely  to  foreign-built  vessels  ? 

Mr.  DAVIS.  No,  sir ;  I  would  buy  them  and  put  them  under  our  flag. 
The  ships  are  yours  when  you  buy  them. 

Mr.  MORRELL.  Do  you  not  think  that  it  is  the  policy  of  the  govern 
ment  to  encourage  that  interest,  and  to  have  mechanics  to  build  iron 
ships  as  well  as  wooden  ones  f 

Mr.  DAVIS.  No,  sir ;  I  do  not  think  it  public  policy  to  build  iron  ships 
here  and  to  protect  them  by  a  protective  tariff.  If  we  can  build  iron 
ships  here  as  cheaply  as  they  do  in  England,  let  us  build  them.  I  go  a 
good  deal  for  free  trade,  and  to  let  the  smartest  take  the  lead.  I  believe 
that  this  young  country  will  do  better  in  that  way  than  in  the  other  way. 
I  do  not  like  so  much  red  tape,  so  much  tied-up  business.  I  think  we 
should  do  better  if  we  had  more  liberty. 

Mr.  MORRELL.  Then  you  believe  it  better  to  sacrifice  that  interest,  at 
present,  as  you  know  we  cannot  immediately  compete  with  iron  ship 
builders  abroad  ? 

Mr.  DAVIS.  There  is  no  sacrifice  if  we  cannot  do  it. 

Mr.  MORRELL.  Iron  ships  have  been  built  in  this  country,  and  can  be 
built  now  to  some  extent. 

Mr.  DAVIS.  Time  will  bring  it  along,  no  doubt.  We  cannot  build  iron 
ships  here  now  at  anything  like  the  price  that  we  can  buy  them  for  across 
the  water.  If  we  undertake  to  build  iron  ships  who  is  going  to  pay  the 
bills? 

Mr.  CALKIN.  Are  you  in  favor  of  admitting  back  vessels  that  were 
once  under  the  American  flag,  and  that  were  put  under  a  foreign  flag 
during  the  war  ? 

Mr.  DAVIS.  No,  sir.  Let  them  die  off;  they  will  soon  die  off,  the  gen 
eral  age  of  a  ship  is  from  six  to  eight  years. 

Mr.  Davis  submitted  to  the  committee  the  following  business  letters : 

ST.  Jotix,  N.  B.,  September  27,  1869. 

DEAR  SIRS  :  I  have  your  note  of  23d  instant.  In  reply,  beg  to  say  that  the  hist  sale 
of  a  seven  year  veritas  classed  ship  was,  hull  and  spars,  twenty-five  dollars,  gold,  per  ton, 
and  outfits,  with  wire  rigging,  would  cost  not  over  ten  dollars  per  ton,  gold.  This  sale 
was  made  under  peculiar  circumstances,  and  was  rather  under  the  market;  but  no 
doubt  a  ship  of  similar  class  could  bo  contracted  for  at  twenty-six  dollars  per  ton, 
anything  from  one  thousand  tons  and  upwards.  Six  years'  class  at  voritas  can  bo  pro 
duced  at  twenty-four  dollars  per  ton,  outfits  at  the  same  rate  as  dearer  vessels. 
I  am  yours,  truly, 

WM.  THOMSON. 
Messrs.  C.  M.  DAVIS,  Portland. 

English  measurement  about  the  same  as  American  new  measurement. 

C.  M.  D.  &  CO. 


138  NAVIGATION   INTERESTS. 

QUEBEC,  September  30, 1869. 

DEAR  SIRS  :  In  reply  to  your  favor  of  September  23,  we  have  ascertained  that  the 
cost  of  building  ships 'in  this  place  is  as  follows :  A  1,  seven  years,  1,000  tons,  not  cop 
pered,  but  copper  fastened  up  to  the  lower  deck  stringers,  and  the  usual  Quebec  outlit, 
§38  gold  per  registered  ton ;  for  a  1,500-toii  ship  as  above,  the  cost  would  not  exceed 
$37  per  ton. 

The  highest  price  any  of  our  first-class  builders  have  named  is  $39  per  ton,  and  we 
are  satisfied  that,  at  these  figures,  you  could  contract  to  build  a  really  first-class  ship. 
Yours,  truly, 

For  R.  R.  DOBELL  &  CO., 
•  T.  BECKETT. 

Messrs.  C.  M.  DAVIS  &  Co., 

Portland,  Maine. 

English  measurement  about  the  same  as  American  new  measurement. 

C.  M.  D.  &  CO. 

Mr.  CYRUS  F.  SARGENT  said  that  lie  had  been  building  ships  for  some 
fifteen  years,  but  had  never  sailed  any  himself.  He  had  been  no  ship 
owner. 

The  CHAIRMAN.  Do  you  believe  that  if  the  duties  were  taken  off  ship 
building  materials  the  ship-building  interest  of  this  country  would 
revive  f 

Mr.  SARGENT.  Undoubtedly  it  would. 

The  CHAIRMAN.  Do  you  think  that  we  can  compete  with  Great  Britain 
in  building  wooden  ships  ? 

Mr.  SARGENT.  I  think  we  could  if  we  had  a  drawback  upon  all  the 
materials  that  enter  into  the  construction  of  ships.  As  it  is,  after  a  ship 
is  built  here  we  cannot  copper  her  here,  on  account  of  the  expense.  We 
take  a  lower  rate  of  freight  than  we  would  otherwise  take,  for  the  pur 
pose  of  sending  her  to  Europe  to  have  her  coppered. 

The  CHAIRMAN.  Do  they  copper  a  ship  on  the  other  side  as  well  as 
they  do  here  ? 

Mr.  SARGENT.  Yes,  sir,  I  think  they  do. 

Mr.  WELLS.  What  is  the  cost  per  ton  of  coppering  a  first-class  ship  ? 

Mr.  SARGENT.  To  copper  a  thousand-ton  ship  would  cost,  I  think, 
about  six  thousand  dollars.  That  includes  the  docking  of  the  ship,  the 
cost  of  the  copper,  and  putting  it  on. 

The  CHAIRMAN.  Do  you  believe,  if  the  materials  entering  into  the  con 
struction  of  vessels  were  exempt  from  duty,  that  ships  could  be  built  as 
fast  as  the  demands  of  business  required  them  ? 

Mr.  SARGENT.  Yes,  sir,  wooden  ships  could  be.  I  have  talked  with 
ship-builders  from  Quebec  and  St.  John,  and  the  information  I  received 
from  them  is  somewhat  different  from  that  which  Captain  Davis  has 
stated.  My  understanding  is  that  ships  there  cost  more  than  Captain 
Davis  has  stated,  and  I  think  we  can  build  better  ships  than  they  can ; 
we  have  better  materials.  Our  southern  pine  is  one  of  the  best  articles 
that  goes  into  the  construction  of  a  ship,  and  we  can  get  it  cheaper  than 
any  people  in  the  world. . 

Mr.  WELLS.  Can  you  get  it  any  cheaper  than  they  can  get  it  in  the 
provinces  ?  Have  they  not  the  right  to  go  to  North  Carolina  for  it,  and 
take  it  into  the  provinces  free  of  duty  I 

Mr.  SARGENT.  I  do  not  know  whether  there  is  any  duty  on  it  or  not. 

The  CHAIRMAN.  Do  you  think  that  we  sail  our  ships  as  cheaply  as  the 
English  sail  their  ships  ?  Do  you  think  that  an  American  ship-owner 
could  afford  to  run  a  ship  in  competition  with  foreign  ship-owners,  pro 
vided  he  can  obtain  her  as  cheaply  ? 

Mr.  SARGENT.  It  is  my  opinion  that  the  English  sail  their  ships  for 
less  than  we  do.  They  have  a  larger  number  of  men,  and  they  pay  them 


NAVIGATION   INTERESTS.  139 

higher  wages  than  we  do.  But  we  ship  our  men  in  Liverpool  or  Lon 
don,  and  they  get  the  best  men.  The  American  ship  only  gets  the  re 
jected  men  that  the  English  ships  will  not  take. 

Mr.  WELLS.  What  is  the  policy  of  shipping  the  poorest  men  they  can 
find  ? 

Mr.  SARGENT.  Before  a  sailor  in  Liverpool  can  go  on  board  an  English 
ship,  he  must  have  a  certificate  from  the  last  master  that  he  was  under ; 
he  must  have  a  certificate  of  good  moral  character  and  efficiency.  The 
consequence  is  that  the  English  ships  take  all  the  good  men,  and  leave 
the  American  ships  only  the  "  runaways  "  and  desperate  men,  whom  it  is 
hard  to  manage.  They  come  right  on  board,  and  no  questions  are 
asked,  and  the  American  ships  take  them. 

Mr.  MORRELL.  What  is  your  opinion  in  reference  to  the  repeal  of  the 
navigation  laws  ?  Do  you  believe  it  best  for  American  commerce  ? 

Mr.  SARGENT.  I  should  not  think  it  would  be,  except  all  the  tariff 
laws  are  repealed  together,  and  let  us  have  free  trade  in  everything. 

Mr.  CALKIN.  What  do  you  mean  by  that "? 

Mr.  SARGENT.  I  mean,  to  have  general  free  trade  all  over  the  country 
in  everything. 

Mr.  CALKIN.  What  effect  would  the  repeal  of  the  navigation  laws  have 
upon  the  general  interest  of  the  country  ? 

Mr.  SARGENT.  That  alone,  I  should  think,  would  operate  against  the 
ship-building  business  of  the  country. 

Mr.  CALKIN.  Would  it  not  eventually  transfer  our  ship-yards  to  for 
eign  countries  ? 

Mr.  SARGENT.  As  Mr.  Dyer  remarked,  it  would  shut  up  the  ship-yards 
here;  but  if  you  make  it  free  trade  in  all  things,  I  think  we  can  compete 
with  foreigners. 

Mr.  CALKIN.  I  suppose  it  is  simply  a  question  whether  our  laboring 
men  shall  be  reduced  to  the  level  of  the  laboring  men  of  other  nations. 
Would  not  that  be  the  effect  ? 

Mr.  SARGENT.  I  should  not  think  it  would. 

Mr.  CALKIN.  Are  you  well  acquainted  with  most  of  the  ship-owners  of 
Portland  ? 

Mr.  SARGENT.  I  know  quite  a  number  of  them — perhaps  the  majority. 

Mr.  CALKIN.  Can  you  tell  what  their  sentiment  is  in  regard  to  the  re 
peal  of  the  navigation  laws  f 

Mr.  SARGENT.  I  have  never  exchanged  views  on  the  subject  with  the 
ship-owners  of  Portland.  I  built,  during  the  war,  a  ship  of  about  eleven 
hundred  and  fifty  tons,  ready  for  sea,  and  I  believe  she  only  cost  me 
$41,000  in  gold.  That  was  in  1864  or  18G5,  I  believe. 

The  CHAIRMAN.  The  premium  on  gold  was  very  high  at  that  time  ? 

Mr.  SARGENT.  Yes.  I  am  of  opinion  that  a  ship  can  be  built  for 
gold  now  cheaper  than  she  could  be  before  the  war.  It  seems  to  me 
that  the  great  difficulty  is  the  depreciation  in  the  currency. 

The  CHAIRMAN.  Do  you  mean  to  say  that  you  can  build  a  ship. cheaper 
now  than  you  could  then,  paying  the  duty  on  the  materials? 

Mr.  SARGENT.  Yes,  sir ;  other  gentlemen  may  differ  with  me,  but  that 
is  my  opinion.  The  last  ship  I  built  was  fifteen  hundred  odd  tons.  She 
was  ready  for  sea,  (not  coppered,)  had  eighteen  months'  provisions  on 
board,  and  she  only  cost  about  sixty  dollars  a  ton.  She  went  to  sea  two 
years  ago. 

The  CHAIRMAN.  Then,  according  to  your  present  statement;  we  really 
do  build  our  ships  as  cheap  as  we  ever  did  ? 

Mr.  SARGENT.  I  think  so ;  there  is  the  trouble  about  this  depreciated 
currency.  It  is  a  speculating  matter.  Wrhen  one  wins  another  loses. 


140  NAVIGATION   INTERESTS. 

That  was  the  reason  why  the  ship  we  built  during  the  war  cost  such  a 
small  amount  in  gold ;  for  exchange  was  then  at  two  hundred  and  fifty. 

Mr.  WELLS.  Did  you  build  her  on  English  account  ? 

Mr.  SARGENT.  No,  sir;  but  I  made  a  contract  with  some  of  the  own 
ers  that  the  account  should  be  made  up  in  gold. 

The  CHAIRMAN.  What,  then,  do  you  consider  to  be  the  difficulty  under 
which  we  labor  at  present  in  reviving  our  commerce  1  Why  do  wre  not 
build  ships  ? 

Mr.  SARGENT.  The  great  trouble  is  in  the  depreciated  currency.  Peo 
ple  say,  "  I  can  get  a  better  interest  for  my  money  than  I  can  by  putting 
it  in  a  ship."  They  do  not  wait  to  consider  that  they  are  really  paying 
only  seventy  cents  on  the  dollar.  They  deceive  themselves  in  the  mat 
ter  of  the  currency,  and  you  cannot  get  them  to  build  a  ship  that  would 
cost  eighty  or  ninety  dollars  a  ton  in  currency. 

The  CHAIRMAN.  Then  there  is  only  an  imaginary  difference  in  the 
price ;  it  is  not  a  real  difference  ? 

Mr.  SARGENT.  Only  an  imaginary  difference. 

Mr.  CALKIN.  Do  you  live  in  Portland  ? 

Mr.  SARGENT.  No,  sir. 

Mr.  CALKIN.  Where  do  you  reside  ? 

Mr.  SARGENT.  In  Yarmouth. 

Mr.  CALKIN.  That  is  a  ship-building  place  ? 

Mr.  SARGENT.  Yes,  sir. 

Mr.  CALKIN.  What  is  the  sentiment  of  the  ship-owners  of  Yarmouth 
in  reference  to  the  repeal  of  the  navigation  laws  ? 

Mr.  SARGENT.  I  do  not  know  that  I  have  ever  talked  with  them  about 
that ;  but  we  have  talked  a  good  deal  in  reference  to  free  trade  for  every 
thing  and  for  everybody.  And  as  to  our  ship-building  interest,  we  feel 
satisfied  that  we  could  compete  with  any  other  people,  so  far  as  we  are 
concerned,  if  we  had  free  trade. 

The  CHAIRMAN.  Then  you  do  not  want  the  principle  of  free  trade  ap 
plied  to  ships  alone  ? 

Mr.  SARGENT.  No,  sir. 

Mr.  WELLS.  Do  you  not  find  from  experience  that  gentlemen  who 
have  heretofore  had  their  money  invested  in  ship  property  make  more 
interest  now  by  putting  their  money  in  the  national  banks  and  railroads, 
and  other  speculations,  and  that  that  is  a  reason  for  the  depression  of 
the  ship-building  interest! 

Mr.  SARGENT.  Yes,  sir.  The  English  ship-owner  will  be  satisfied  with 
four  or  five  per  cent,  interest  on  his  money ;  but  here  in  America  nothing 
will  satisfy  people  less  than  eight  per  cent.,  and  many  of  them  put 
their  money  in  bonds  and  securities.  The  English  are  easier  satisfied. 

Mr.  WELLS.  Prior  to  the  war  were  not  ship-owners  making  more  than 
eight  or  ten  per  cent.  ? 

Mr.  SARGENT.  Yes,  sir. 

Mr.  CALKIN.  What  is  the  average  life  of  American  ships  ? 

Mr.  SARGENT.  1  believe  underwriters  state  it  at  about  eight  years. 

The  CHAIRMAN.  What  is  the  life  of  ships  built  in  the  Provinces  I 

Mr.  SARGENT.  I  do  not  kno\y. 

Mr.  CALKIN.  Have  we  not  had  the  reputation  always  of  building  bet 
ter  ships  here  than  they  do  in  the  Provinces  ? 

Mr.  SARGENT.  We  always  had. 

Mr.  CALKIN.  Does  not  the  English  capitalist  calculate  more  closely  on 
his  percentage  on  the  loss  being  a  total  loss  than  an  American  does  on 
his  investment  in  an  American-built  ship  ? 

Mr.  SARGENT.  In  the  north  of  Europe  and  in  England,  and  many 


NAVIGATION   INTERESTS.  141 

European  countries,  they  only  insure  against  a  total  loss.  If  a  ship 
touches  bottom  they  pay  a  partial  loss ;  but  if  any  other  damage  results, 
that  is  unless  she  touches  bottom,  the  underwriter  does  not  pay  any 
loss. 

Mr.  BUFFINTON.  How  much  more  do  you  pay  for  the  materials  that 
go  into  a  ship  now  than  you  had  to  pay  for  them  before  the  war  ? 

Mr.  SARGENT.  I  have  never  made  a  calculation  about  that. 

Mr.  CALKIN.  Bo  you  not  pay  more  for  iron  and  more  for  duck  than 
you  did  before  the  war  ? 

Mr.  SARGENT.  Yes,  sir. 

Mr.  BUFFINTON.  Do  you  not  really  pay  from  ten  to  thirty  per  cent, 
more  for  every  article  that  goes  into  the  construction  of  a  ship  than  you 
paid  before  the  war  ? 

Mr.  SARGENT.  Taking  all  the  materials,  I  should  say  that  they  would 
not  cost  thirty  per  cent,  more  than  they  did  before  the  war. 

Mr.  BUFFINTON.  I  say  from  ten  to  thirty  per  cent. 

Mr.  SARGENT.  Yes,  they  would. 

Mr.  BUFFINTON.  I  ask  you,  then,  this  question,  because  it  is  thought 
that  there  must  have  been  an  error  in  a  remark  you  made,  and  that  you 
could  not  have  intended  to  say  what  you  did.  You  said  that  you  could 
build  a  ship  to-day  just  as  cheap  with  gold  as  you  could  before  the  war. 
How  could  you  do  it  with  labor  higher,  and  materials  higher  ? 

Mr.  SARGENT.  The  difference  in  labor  and  the  difference  in  the  cost 
of  materials  do  not  amount  to  the  difference  in  value  between  gold  and 
paper. 

Mr.  BUFFINTON.  But  before  the  war,  iron  and  all  the  materials  that 
went  into  the  construction  of  ships  were  from  ten  to  thirty  percent,  less 
than  they  are  now.  Do  you  mean  to  say  that  after  paying  the  increased 
cost  of  these  articles  you  can  still  build  a  ship  as  cheaply  as  you  could 
before  the  war  ? 

Mr.  SARGENT.  Either  you  or  I  do  not  understand  it.  The  increased 
price  of  the  materials  that  go  into  the  construction  of  a  ship  does  not 
amount  to  the  premium  that  there  is  on  gold;  say  thirty-five  per  cent. 

Mr.  BUFFINTON.  Iron  costs  a  great  deal  more ;  sail-cloth  costs  a  great 
deal  more ;  and  in  fact  every  article  costs  more. 

Mr.  SARGENT.  Yes,  more  in  paper  money. 

Mr.  BUFFINTON.  Do  they  not  cost  more  in  gold  ? 

Mr.  SARGENT.  No,  sir ;  southern  pine  costs  less  in  gold.  - 

Mr.  BUFFINTON.  How  about  iron  "I 

Mr.  SARGENT.  All  the  difference  is  just  the  duty. 

Mr.  BUFFINTON.  If  you  are  correct  I  do  ftot  see  that  the  country  needs 
any  legislation  on  the  subject. 

The  CHAIRMAN.  How  much  do  the  duties  on  the  materials  in  a  thou 
sand-ton  wooden  ship  amount  to  ? 

Mr.  SARGENT.  I  have  never  seen  the  figures  made.  I  have  talked 
with  a  number  of  ship-owners  on  the  subject,  and  they  have  put  the 
amountfrom  $10,000  to  $15,000 ;  perhaps  $12,000  might  come  nearer  to  it. 

The  CHAIRMAN.  The  cost  of  labor  is  somewhat  higher  here  than  in 
England. 

Mr.  SARGENT.  I  suppose  so. 

The  CHAIRMAN.  I  understood  you  to  say  that  we  can  really  build  a 
ship  now  as  cheap  in  gold  as  a  ship  can  be  built  for  in  Great  Britain  in 
gold. 

Mr.  SARGENT.  That  I  do  not  know.    I  did  not  make  that  statement. 

The  CHAIRMAN.  I  understood  you  to  say  that  the  difference  was  only 
about  the  difference  in  currency. 


142  NAVIGATION    INTERESTS. 

Mr.  SARGENT.  I  made  the  statement  that  we  could  build  a  ship  here 
in  gold  as  cheaply  as  we  did  before  the  war. 

The  CHAIRMAN.  The  tariff  has  been  increased  very  largely.  Do  I  un- 
understand  you  to  say  that  ships  can  be  built,  paying  the  duty  on  the 
materials,  as  cheaply  now  as  when  there  were  no  duties  paid? 

Mr.  SARGENT.  That  is  the  question  you  all  want  to  know.  I  answer 
as  I  did  at  first,  that  if  you  let  the  duties  go  just  as  they  are,  we  can 
build  a  ship  now  as  cheaply  in  gold  as  we  could  before  the  war. 

The  CHAIRMAN.  Then  how  do  you  overcome  the  disadvantage  result 
ing  from  the  increase  in  the  tariff? 

Mr.  SARGENT.  A  good  deal  of  it  comes  out  of  the  labor.  We  paid  for 
good  men  before  the  war  from  one  dollar  and  seventy-five  cents  to  two 
dollars  a  day.  Two  dollars  would  be  the  average  price.  Now  we  pay 
only  two  dollars  and  fifty  cents. 

The  CHAIRMAN.  Then  you  pay  quite  as  high  in  gold  now  as  you  did 
before  the  war  ? 

Mr.  SARGENT.  No,  sir ;  we  do  not.  If  you  add  thirty-five  per  cent,  to 
what  we  paid  before  the  war,  you  will  find  we  do  not  pay  so  much  now. 

Mr.  WELL-S.  T  understood  you  to  say  that  in  1864-'Go  you  built  a  ten- 
hundred-and-fifty-ton  ship  at  a  cost  of  forty-one  thousand  dollars  ? 

Mr.  SARGENT.  Yes,  sir.  That  was  in  the  time  of  the  war,  when  gold 
was  very  high.  Exchange  was  selling  for  about *two  hundred  and  fifty. 

Mr.  WELLS.  Can  you  tell  me  what  the  duty  on  iron  and  the  duties  on 
the  materials  that  go  into  ship-building  are  now,  compared  Avith  what 
they  were  in  1860  ? 

Mr.  SARGENT.  I  do  not  think  I  can. 

Mr.  W'ELLS.  The  difference  is  not  over  ten  per  cent.,  is  it  ? 

Mr.  SARGENT.  I  do  not  recollect.  Before  the  war  I  recollect  buying 
iron  for  about  forty -two  dollars  per  ton. 

The  CHAIRMAN.  What  effect  would  it  have  on  our  navigation  interest 
if  Congress  were  to  admit  foreign-built  ships  free  ?  Would  it  have  a 
tendency  to  carry  the  ownership  partly  abroad? 

Mr.  SARGENT.  I  do  not  know.  I  should  hardly  think  it  would ;  for 
all  owners  like  to  have  the  other  owners  as  near  home  as  they  can  get 
them.  If  you  are  connected  in  business  with  men,  you  want  them  where 
you  can  see  them  occasionally  j  and  that  would  be  the  case  with  ship 
owners. 

The  CHAIRMAN.  Do  you  mean  to  say  that,  as  a  general  rule,  we  pay 
less  to  our  sailors  than  the  English  do  I 

Mr.  SARGENT.  Yes,  sir ;  the  wages  of  sailors  are  lower  in  an  Ameri 
can  ship  than  in  an  English  ship. 

The  CHAIRMAN.  I  understood  you  to  say  that  the  duty  is  from  ten  to 
fifteen  dollars  a  ton  in  gold  on  all  the  materials  that  enter  into  the  con 
struction  of  a  ship,  and  yet  you  say  that  notwithstanding  that,  you  can 
build  ships  as  cheaply  as  they  can  build  them  on  the  other  side  ? 

Mr.  SARGENT.  Not  on  the  other  side ;  you  confound  that  thing  •  but 
I  say  that  we  can  build  them  as  cheaply  as  we  built  them  before  the 
war. 

The  CHAIRMAN.  Did  we  build  our  ships  as  cheaply  before  the  war  as 
they  built  them  on  the  other  side  2 

Mr.  SARGENT.  We  built  them  cheaper. 

The  CHAIRMAN.  Then,  of  course,  we  still  build  them  cheaper  than 
they  do  on  the  other  side.  That  is  a  very  remarkable  statement ;  and 
what  I  want  to  get  at  is,  how  you  account  for  that  condition  of  things, 
that  we  can  pay  an  increased  duty  of  ten  to  fifteen  dollars  a  ton  in  gold, 


NAVIGATION   INTERESTS.  143 

and  still  build  not  only  cheaper  here,  but  cheaper  than  where  all  the 
materials  are  free  of  duty. 

Mr.  SARGENT.  It  is  because  our  greenbacks  are  worth  only  seventy 
cents  on  the  dollar. 

The  CHAIRMAN.  Put  the  two  in  gold.  Suppose  that  you  build  for 
gold,  and  that  your  foreign  competitor  builds  for  gold  ? 

Mr.  SARGENT.  Yes,  but  we  do  not  build  for  gold;  we  build  for  paper, 
and  then  wre  reduce  the  cost  to  gold. 

The  CHAIRMAN.  And  you  build  for  less  on  this  paper  basis  I 

Mr.  SARGENT.  When  it  is  reduced  to  gold,  the  ship  does  not  cost  any 
more  than  it  did  before  the  war. 

The  CHAIRMAN.  Then  there  is  great  advantage  to  ship-builders  to 
build  for  paper  ? 

Mr.  SARGENT.  Yes,  sir. 

The  CHAIRMAN.  Then,  instead  of  the  currency  being  a  disadvantage, 
it  is  an  advantage  ? 

Mr.  SARGENT.  It  operates  against  the  laborer ;  it  conies  out  of  him. 

The  CHAIRMAN.  I  understood  you  to  say  that  you  paid  about  two 
dollars  a  day  on  the  average  in  1860,  and  that  you  now  pay  two  dollars 
and  a  half.  Is  not  that  an  increase  of  twenty-five  per  cent.  ? 

Mr.  SARGENT.  Yes,  reckoning  gold  and  paper  equal. 

The  CHAIRMAN.  He  can  take  his  paper  and  sell  it,  and  still  get  two 
dollars  in  gold J? 

Mr.  SARGENT.  O  no ;  you  must  take  off  thirty-five  per  cent.,  which 
will  leave  him  less  than  two  dollars  in  gold.  If  he  got  two  dollars  in 
gold  before  the  war?  that  gold  would  cost  now  two  dollars  and  sixty 
cents,  and  wre  only  give  him  two  dollars  and  a  half. 

The  CHAIRMAN.  That  makes  ten  cents  a  day  difference,  and  that  cer 
tainly  cannot  account  for  all  the  other  differences. 

Mr.  SARGENT.  There  is  other  labor  connected  with  ship-building  be 
sides  the  carpenter  labor.  I  do  not  think  that  ship-carpenters  are  in  as 
good 'a  condition  now  as  they  were  before  the  war. 

The  CHAIRMAN.  Does  not  that  result  from  the  fact  that  they  are  not 
employed  fully  I 

Mr.  SARGENT.  I  don't  know  about  that.  They  are  employed  about 
the  same.  In  Yarmouth  they  are. 

The  CHAIRMAN.  Do  you  mean  to  say  that  ship-building  is  as  pros 
perous  now  in  Yarmouth  as  it  was  before  the  war.  and  that  there  is  as 
much  doing  there  now  as  there  was  before  the  war  ? 

Mr.  SARGENT.  More.  There  has  been  more  doing  for  the  last  year 
than  there  had  been  before  the  war. 

Mr.  WELLS.  What  class  of  ships  do  they  build  there! 

Mr.  SARGENT.  Ships  for  the  coastwise  trade,  and  for  the  European 
trade,  both. 

Mr.  WELLS.  What  did  ships  cost  before  the  war  ? 

Mr.  SARGENT.  A  thousand-ton  ship  would  be  built  for  from  fifty-five 
thousand  to  sixty  thousand  dollars. 

Mr.  WELLS.  What  would  you  build  the  same  class  of  ship  for  to-day, 
in  paper  money  f 

Mr.  SARGENT.  I  should  think  it  could  be  built  for  eighty  thousand 
dollars.  I  was  told  the  other  day  that  one  wras  built  in  Kennebunk  of 
a  thousand  tons,  and  was  sold  to  a  party  in  Boston  for  seventy-six 
thousand  dollars.  There  are  some  materials  which  would  be  worth 
more  in  gold  than  they  were  before  the  war. 

Mr.  GILES  LORING,  of  Yarmouth,  stated  that  he  was  a  practical  ship 
builder.  That  had  been  his  business  for  quite  a  number  of  years.  He 


1 44  NAVIGATION  *  INTERESTS. 

had  acted  as  a  boss  carpenter  and  contractor.  He  had  built  ships4  be 
fore  the  war,  and  had  built  some  during  the  war,  and  some  since  the 
war.  He  could  hardly  agree  with  his  friend,  Mr.  Sargent,  and  he  could 
not  exactly  agree  with  his  friend  Mr.  Davis,  in  his  answer  to  one  ques 
tion  about  foreign  capitalists.  He  (Mr.  Loring)  thought  that  if 
Americans  bought  their  ships  abroad,  foreign  capitalists  would  cer 
tainly  have  an  interest  in  them.  The  lumber  which  he  used  to  get  be 
fore  the  war  from  Canada,  for  the  floor  and  frame  of  the  ship,  at  from 
ten  to  thirteen  dollars  a  ton,  delivered  in  the  cars  at  Portland,  he  had 
now  to  pay  eighteen  and  twenty  dollars  a  ton  for.  He  had  got  one  floor 
and  top  from  there  at  ten  dollars,  and  this  year  he  had  to  pay  nineteen 
dollars  for  the  same.  Therefore,  Mr.  Sargent's  idea  that  ships  could  be 
built  just  as  cheap  now  as  before  the  war,  on  a  gold  basis,  he  certainly 
could  not  agree  with. 

The  CHAIRMAN.  What  is  the  difference  in  the  cost  of  a  thousand- ton 
ship  now  and  before  the  war  ? 

Mr.  LORING.  I  should  give  it  as  my  idea,  that  the  difference  amounts 
to  about  twenty  per  cent,  more  now  than  before  the  war. 

The  CHAIRMAN.  Do  you  mean  in  gold  ? 

Mr.  LORING.  Yes,  sir,  in  gold.  But  still  I  may  be  mistaken.  Gold 
and  paper  were  one  and  the  same  thing  before  the  war.  He  disagreed 
with  his  friend  Mr.  Sargent  in  stating  that  as  many  ships  were  built 
now  as  before  the  war.  The  money  which  used  to  be  invested  in  ships 
was  now  invested  in  government  bonds,,  because  the  owners  could  do 
better  in  that  way.  All  that  worked  against  the  ship-building  business. 
It  seemed  to  him  that  if  there  were  not  drawbacks  allowed,  (although 
he  was  not  able  to  say  what  they  should  be?)  it  would  be  but  a  few 
years  before  all  the  ship -builders  would  have  to  leave  Maine  and  go  out 
West. 

The  CHAIRMAN.  State  your  opinion  as  to  what  ought  to  be  done. 

Mr.  LORING.  I  should  rather  leave  that  to  my  friend,  the  chairman  of 
the  committee,  because  he  is  a  more  practical  man  in  that  business  than 
I  am. 

The  CHAIRMAN.  What  relief  would  enable  you  to  build  ships  in  com 
petition  with  foreign  ship-builders  ? 

Mr.  LORING.  If  you  take  the  duties  off  everything  that  we  have  to 
use  in  ships,  we  can  compete  with  any  other  nation. 

The  CHAIRMAN.  Do  you  think  that  that  would  revive  the  ship-build 
ing  interest  ? 

Mr.  LORING.  I  think  it  would.  The  great  trouble  now  is  that  ships 
cost  so  much,  and  that  people  are  not  willing  to  put  their  money  into 
them. 

The  CHAIRMAN.  You  then  give  it  as  your  opinion,  that  if  the  duties 
were  taken  off  all  the  materials  that  enter  into  the  construction  of  ships, 
the  ship-builders  of  this  country  would  be  able  to  build  ships  as  cheaply 
as  they  are  built  abroad.  And  you  think  that  if  ships  could  be  built  as 
cheaply  here  as  abroad  men  would  invest  their  money  in  them,  and 
that  that  would  tend  to  revive  the  business  ? 

Mr.  LORING.  That  is  my  idea ;  and  if  something  is  not  done,  it  will  be 
the  ruin  of  Maine  ;  for  when  our  ship-building  interest  is  gone,  Maine 
is  gone. 

The  CHAIRMAN.  What  would  be  the  effect  upon  the  ship-building  in 
terest  if  foreign  ships  were  allowed  to  come  in  and  be  nationalized,  pro 
vided  at  the  same  time  that  you  were  allowed  drawbacks  on  the  materials 
entering  into  the  construction  of  ships  ?  Could  you  then  compete  with 
foreign  ship-builders  ? 


NAVIGATION    INTERESTS.  145 

Mr.  LORING.  I  should  hardly  think  we  could. 

The  CHAIRMAN.  If  you  were  protected  from  that  competition  for  a 
number  of  years,  do  you  think  that  then  you  could  do  it  ? 

Mr.  LORING.  I  think  we  could,  it'  we  had  protection  until  we  got  a 
start. 

The  CHAIRMAN.  Could  you  have  stood  such  competition  prior  to  the 
war  ?  % 

Mr.  LORINO.  I  should  hardly  know  how  to  answer  that  question.  My 
opinion  is  that  we  could  at  that  time,  but  that  we  cannot  now. 

The  CHAIRMAN.  But  you  think  that  after  a  few  years  you  could? 

Mr.  LORING.  I  think  that,  after  getting  once  started  again,  we  could. 

The  CHAIRMAN.  What  rate  of  wages  do  you  pay  now? 

Mr.  LORING.  I  paid  this  year  all  the  way  from  two  dollars  and  a  half 
to  three  dollars. 

The  CHAIRMAN.  What  did  you  pay  to  the  same  class  of  mechanics  be 
fore  the  war  ? 

Mr.  LORING.  All  the  way  from  one  dollar  and  seventy-five  cents  up  to 
two  dollars.  I  built  one  vessel  on  which  I  paid  only  one  dollar  and  sev 
enty-five  cents.  That  was  eight  years  ago.  At  that  time  I  paid  a  cent 
and  a  half  a  pound  for  iron. 

The  CHAIRMAN.  How  was  it  from  1852  to  1834  ? 

Mr.  LORING.  I  worked  as  a  carpenter  then,  and  at  that  time  wages 
were  all  the  way  from  one  dollar  and  a  half  to  two  dollars.  Wages  at 
that  time  were  pretty  high. 

The  CHAIRMAN.  What  wages  were  you  paid  as  a  carpenter  at  that 
time  f 

Mr.  LORING.  Two  dollars  and  a  half. 

The  CHAIRMAN.  Were  you  a  master  carpenter  ? 

Mr.  LORING.  No,  sir;  I  was  a  common  carpenter  at  that  time. 

Mr.  CALKIN.  When  did  you  commence  as  a  master  builder  ? 

Mr.  LORING.  In  1855. 

Mr.  CALKIN.  How  many  vessels  have  you  built  since  that  time  ? 

Mr.  LORING.  Speaking  of  the  cost  of  coppering  vessels,  a  few  years 
ago  I  had  a  ship  of  seven  hundred  tons  coppered  abroad.  The  cost  of 
the  coppering  of  that  vessel  was  just  about  equal  to  the  cost  of  copper 
ing  one  of  four  hundred  tons  here.  I  know  that,  because  I  had  at  that 
time  one  coppered  abroad  and  one  coppered  in  New  York.  A  great 
many  of  our  New  York  ship-owners  prefer  to  have  their  ships  coppered 
at  home. 

Mr.  CALKIN.  Do  they  think  that  the  work  is  done  better  here  ? 

Mr.  LORING.  I  do  not  know  that  it  is  done  better;  but  I  believe  they 
would  get  it  done  just  as  cheap,  notwithstanding  that  they  pay  higher 
wages  here  than  are  paid  abroad. 

The  CHAIRMAN.  Are  you  a  ship-owner  now? 

Mr.  LORING.  Yes,  sir. 

The  CHAIRMAN.  As  a  general  thing,  do  those  who  build  ships  in  your 
section  retain  an  interest  in  the  vessel? 

Mr.  LORING.  As  a  general  thing  they  do.  That  is  the  way  I  have 
worked.  A  captain  comes  to  ine  sometimes  with  one-fourth  and  some 
times  with  one  half  the  cost  of  a  vessel,  and  I  have  to  look  out  to. make 
up  the  difference.  Sometimes  1  have  one-fourth  of  it  entered  in  my 
name ;  sometimes  more,  and  sometimes  not  so  much. 

The  CHAIRMAN.  How^  many  vessels  are  you  interested  in* 

Mr.  LORING.  Only  four. 

The  CHAIRMAN.  How  large  a  class  of  vessels  are  you  owning  in  ? 

ION  I 


146  NAVIGATION   INTERESTS. 

Mr.  LORING.  The  vessels  I  have  built  have  been  from  four  hundred  to 
nine  hundred  tons. 

The  CHAIRMAN.  Is  it  the  practice  of  ship-masters  also  to  own  parts  of 
the  vessel  ? 

Mr.  LORING.  Yes,  sir. 

The  CHAIRMAN.  Then  the-  ownership  is  divided  between  the  ship 
builder,  the  ship-master,  and  the  merchant  who  does  the  business? 

Mr.  LORING.  Yes,  sir ;  and  as  they  say  with  us,  "  all  the  parish." 
Sometimes  the  joiner  has  an  interest;  sometimes  the  calker,  the  black 
smith,  the  former,  and  the  trader.  In  fact,  everything  of  that  kind  with 
us  is  brought  into  the  shipping  interest. 

The  CHAIRMAN.  So  far  as  you  know  throughout  the  State,  is  that  the 
manner  in  which  ships  are  built  and  owned  ? 

Mr.  LORING.  I  should  suppose  it  was,  but  I  do  not  pretend  to  say  that 
it  is.  There  is  one  thing  which  works  a  little  against  the  ship-builder ; 
m  the  first  place,  the  government  established  eight  hours  for  a  day's 
labor.  Now,  for  a  ship-builder  to  employ  men  in  that  way  is  rather  out 
of  the  question.  Perhaps  it  is  right  for  the  government  to  do  so;  but 
the  consequence  is  that  Mr.  A,  Mr.  B,  Mr.  C,  and  Mr.  D,  ship-carpenters, 
will  say,  "  I  must  get  into  the  government  employment,  because  I  have 
only  to  wrork  eight  hours,  and  I  can  get  a  little  more  pay  than  by  work 
ing  ten  hours  in  private  employ  merit."  I  should  say  that  this  year  from 
four  to  six  of  our  best  carpenters  have  gone  to  the  Kittery  navy  yard. 
We  thus  lose  from  this  class  some  of  our  best  men. 

The  CHAIRMAN.  I  supposed  that  the  navy  yard  being  so  far  off  would 
not  have  had  much  effect  on  you  ? 

Mr.  LORING.  I  think  the  effect  is  considerable.  The  distance  does 
not  make  any  difference ;  they  will  go  sometimes  to  Boston  and  some 
times  to  New  York  to  get  into  the  navy  yards.  People  do  not  like  to 
work  ten  hours  a  day  if  they  can  get  the  same  wrages  by  working  only 
eight  hours. 

Mr.  MORRELL.  As  a  ship-builder,  ship-carpenter,  and  master-builder, 
what  is  your  opinion  as  to  the  eight-hour  law?  Do  you  think  it  calcu 
lated  to  benefit  ship-carpenters  or  not  ? 

Mr.  LORING.  I  should  give  it  as  my  opinion  that  it  was  of  no  benefit 
at  all  to  them,  unless  it  was  so  arranged  that  the  ship-carpenter  could 
work  after  hours  and  get  pay  for  extra  time.  Then  it  would  be  a  ben 
efit. 

Mr.  MORRELL.  Do  you  believe  that  any  United  States  law^  regulating 
the  price  of  labor,  or  the  hours  of  labor,  is  of  any  benefit  to  the  laboring 
man? 

Mr.  LORING.  I  do  not  think  it  is. 

Mr.  CALKIN.  Do  you  mean  to  say  that  it  is  no  benefit  to  him  physi 
cally,  mentally,  or  financially  ? 

Mr.  LORING.  I  do  not  think  it  is  in  any  way.  When  I  began  to  work, 
we  used  to  work,  I  may  say,  from  sun  to  sun.  I  was  opposed  to  that, 
after  a  while,  and  then  we  got  the  ten-hour  system.  I  was  in  favor  of 
that  and  am  now.  I  believe  ten  hours  long  enough  for  a  man  to  work  j 
but  when  you  reduce  the  hours  of  labor  below  that,  I  think  you  are  cut 
ting  them  down  too  much. 

Mr.  CALKIN.  Do  you  not  believe  that  the  government  gets  the  pick  of 
the  mechanics  in  the  ship-yards — ship-builders,  calkers,  iron  workers, 
&c. — by  adopting  the  eight-hours  system  ? 

Mr.  LORING.  Without  doubt  the  government  gets  many  of  the  best 
men  by  adopting  that  system,  but  still,  if  you  take  these  best  men,  put 
them  into  the  government  service,  and  let  them  work  awhile  there, 


NAVIGATION    INTERESTS.  147 

they  will  soon  get  so  that  they  do  not  do  much  work.  I  am  not  saying 
that  for  the  purpose  of  coming  down  on  iny  friends  the  carpenters,  but  it 
is  perfectly  natural  for  men,  when  they  get  into  the  government  service,  to 
do  so.  The  tonnage  dues  have  been  rather  severe  upon  ship-owners.  II 
there  could  be  something  done  to  help  the  ship-owners  and  ship-builders 
in  Maine,  I  think  that  Maine  would  actually  come  up  again.  But  if 
things  go  on  as  they  have  been  going  for  some  years  back,  Maine  will 
certainly  be  depreciated,  and  it  must  necessarily  be  so. 

Mr.  JAMES  E.  SIMPSON  said  that  he  was  a  ship-builder,  and  had  been 
engaged  in  the  repairing  of  ships  up  to  18G3.  He  then  went  to  Boston 
to  construct  a  dock  for  the  South  Point  Dry  Dock  Company  of  Boston. 
He  had  gone  into  the  business  of  building  and  repairing  in  1848,  and 
from  that  time  he  had  more  or  less  to  do  with  ships,  both  in  repairing 
and  constructing,  and'  in  the  construction  of  docks  and  the  docking  of 
ships. 

The  CHAIRMAN.  What  disadvantages  do  we  labor  under  in  the  re 
pairing  of  ships  in  comparison  with  other  countries  ? 

Mr.  SIMPSON.  In  1853-'54-'55-'56  we  could  get  yellow  material  for 
about  eighteen  to  twenty  cents  a  pound.  Now  it  is  from  twenty-seven 
to  thirty  cents  a  pound.  It  is  so  with  all  the  materials  that  enter  into 
the  construction  of  ships.  We  could  then  have  bolts,  spikes,  &c.,  at 
from  three  and  a  quarter  to  three  and  a  half  cents  a  pound.  Now  we 
cannot  buy  the  raw  material  short  of  five  or  six  cents  a  pound.  Ships 
will  not  be  coppered  on  this  side  when  they  can  be  coppered  much 
cheaper  on  the  other  side.  In  1859-'6()  and  'l8Gl  the  docks  of  New 
York  were  employed  all  the  time,  and  ships  were  entered  three,  four, 
five,  and  six  weeks  ahead  for  their  turns  to  get  on  the  dock.  Now,  the 
reverse  is  the  case,  the  docks  lie  five  and  six  weeks  without  a  ship. 
What  is  the  cause  of  it?  The  natural  depression  in  the  shipping  busi 
ness  which  is  caused  by  the  tariff.  The  commerce  of  the  country  is  con 
veyed  in  foreign  bottoms.  There  are  to-day  some  eighty  or  .ninety 
steamers  running  to  New  York,  all  foreign  vessels.  Do  they  ever  dock 
in  New  York  ?  No,  unless  it  is  for  mere  temporary  repairs.  A  state 
ment  had  been  made  by  an  Englishman  that  there  were  no  mechanics 
in  this  country  who  understood  their  business.  He  (Mr.  Simpson)  con 
sidered  that  that  was  a  slur.  An  English  vessel  had  been  recently  taken 
into  the  Erie  basin  and  repaired  in  just  half  the  time  it  would  have  oc 
cupied  to  repair  her  in  England.  Where  six  men  were  employed  in  this 
country  the  English  required  to  use  sixteen.  As  to  the  difference  in 
labor,  he  (Mr.  Simpson)  thought  that,  although  the  nominal  price  of 
labor  was  cheaper  here  than  abroad,  there  was  more  work  got  out  of 
mechanics  in  this  country  in  proportion  to  the  wages  paid. 

The  CHAIRMAN.  What  rates  of  wages  are  paid  in  New  York  ? 

Mr.  SIMPSON.  Wages  there  now  are  four  dollars  a  day. 

The  CHAIRMAN.  What  are  the  rates  here  in  Portland  ? 

Mi.  SIMPSON.  I  think  the  prices  are  from  $3  50  to  $4.  I  have,  while 
constructing  a  dock  here,  paid  from  $2  25  to  $3  25.  The  average  is 
about  $2  50  per  day,  and  four  dollars  in  New  York.  That  is  on  old 
work.  On  new  work  I  should  judge  that  it  is  somewhat  in  the  neigh 
borhood  of  $3  50  a  day  in  New  York.  They  work  one  hour  more  on  new 
work  than  they  do  on  old.  In  Boston  they  work  ten  hours  on  new  work, 
and  eight  hours  on  old.  In  New  York  they  work  nine  hours  on  old  and 
ten  hours  on  new  work.  I  helped  to  dock  the  first  ship  that  was  ever 
docked  in  the  Charlestown  navy  yard — the  Constitution. 

The  CHAIRMAN,  You  have  become  a  contractor  and  a  patentee  of 
docks? 


148  NAVIGATION    INTERESTS. 

Mr.  SIMPSON.  I  started  and  constructed  a  dock  on  my  own  idea,  and 
on  rny  own  patent ;  and  I  have  now  superintended  the  construction  of 
six  of  them. 

The  CHAIRMAN.  You  are  one  of  the  owners  of  the  new  dock  here? 

Mr.  SIMPSON.  Yes. 

Mr.  CALKIN.  How  do  you  account  for  the  difference  in  labor  between 
New  York  and  Maine  ?  Is  there  the  same  supply  of  mechanics  in  New 
York  as  there  is  in  other  places  ? 

Mr.  SIMPSON.  It  is  a  point  of  strike.  At  the  time  they  struck  in  Bos 
ton  the  merchants  undertook  to  hold  out  the  same  as  they  did  in  New 
York.  They  held  out  for  some  time ;  but  finally  they  made  a  compro 
mise  to  give  the  men  four  dollars  a  day  if  they  would  go  to  work,  and 
they  allowed  them  to  work  only  eight  hours.  There  had  been  a  half 
hour  allowed  for  lunch  time,  which  they  did  away  with.  The  ship 
Archer  went  to  Boston  to  be  repaired  from  New  York,  and  when  she 
got  there  the  men  in  Boston  struck  because  they  were  helping  to  sup 
port  the  New  York  society.  I  think  that  ship-builders,  repairers,  &c., 
are  suffering  a  great  deal  to-day  by  the  eight-hour  system  in  the  navy 
yards.  I  have  had  men  leave  me  in  New  York,  and  men  have  also  left 
Mr.  Poillon  and  other  master-builders  to  go  to  the  navy  yards,  because 
they  have  to  work  less  time,  and  thus  the  best  class  of  men  are  taken 
away  from  the  outside  business. 

The  CHAIRMAN.  Have  you  any  knowledge  of  the  building  of  iron 
ships  ? 

Mr.  SIMPSON.  I  was  connected  with  the  building  of  the  first  iron  ship 
in  this  country.  She  was  built  by  Holden  &  Gallagher,  at  East  Boston, 
for  the  Egyptian  government.  She  was  contracted  for  by  George  H. 
Stone.  I  have  seen  the  construction  of  her.  She  was  about  as  thoroughly 
well  constructed  a  ship  as  I  have  ever  seen.  Since  that  I  have  watched 
more  or  less  the  construction  of  iron  vessels.  I  built  in  1867  two  iron 
gates  for  the  last  dock  I  constructed,  which  were  equal  to  about  a  two 
hundred  and  fifty  or  a  three  hundred  ton  iron  vessel,  and  I  am  satisfied 
in  my  own  mind  that  iron  vessels  can  be  constructed  in  this  country,  with 
proper  facilities,  and  we  having  the  materials  at  the  same  price  that 
they  have  them  abroad.  I  think  we  can  compete  with  any  nation  upon 
any  kind  of  ship,  either  wooden  or  iron.  Let  the  government  protect 
us  as  the  English  government  protects  its  ship-builders,  and  in  less  than 
five  years  this  country  can  compete  with  the  world  in  building  ships. 

The  CHAIRMAN.  Iron  ships  ? 

Mr.  SIMPSON.  Any  ships.  Iron  ships  have  been  built  at  Delaware 
and  at  Chester,  and  at  the  Atlantic  Works,  in  East  Boston.  They  are 
built  to-day  as  cheaply  for  gold  as  they  can  be  got  for  gold  in  Europe, 
taking  the  duty  off. 

The  CHAIRMAN.  You  overcome  the  difference  in  the  rates  of  wages 
paid  by  the  greater  efficiency  of  the  workmen  on  this  side? 

Mr.  SIMPSON.  Yes ;  we  pay  more  wages,  but  I  thiuk  we  get  more  work 
for  it.  I  think  that,  with  the  tariff  off,  we  can  build  ships  as  cheaply  as 
they  are  built  on  the  Clyde;  but  as  the  tariff  is,  we  cannot  do  so.  We 
used  to  get  yellow  pine  down  South  for  $25  to  $27  a  thousand,  and  our 
white  oak  for  three  and  a  half  to  four  cents  a  foot,  or  $30  to  $40  a 
thousand.  We  have  now  to  pay  from  $65  to  $75  and  $80  for  white  oak, 
and  from  $35  to  $50  for  yellow  pine. 

The  CHAIRMAN.  Is  there  much  American  iron  used  either  in  building 
or  repairing  a  vessel  ? 

Mr.  SIMPSON.  Not  a  great  deal,  unless  we  want  it  for  strength ;  be- 


NAVIGATION   INTERESTS.  149 

cause  the  English  iron  is  of  a  poorer  quality.  The  Ulster  iron  commands 
the  best  price. 

Mr.  CALKIN.  Are  you  in  favor  of  repealing  the  navigation  laws  so  as 
to  allow  foreign -built  vessels  to  be  brought  here  ? 
Mr.  SIMPSON.  No,  sir. 

Mr.  CALKIN.  If  the  navigation  laws  should  be  repealed,  and  at  the 
same  time  a  drawback  should  be  allowed,  could  the  ship-builders  in 
this  country  compete  successfully  with  the  ship-builders  of  foreign 
countries  ? 

Mr.  SIMPSON.  Yes,  sir. 

Mr.  CALKIN.  I  mean,  if  we  repeal  the  navigation  laws,  and  at  the 
same  time  take  off  all  the  duties  on  materials  entering  into  the  construc 
tion  of  ships,  can  we  commence  right  there  and  then  to  compete  with 
foreign  builders"? 

Mr.  SIMPSON.  Not  just  to-day. 

Mr.  CALKIN.  How  long  a  time  should  the  builders  of  this  country  be 
protected  if  a  law  of  that  kind  should  be  passed! 

Mr.  SIMPSON.  I  think  that  if  they  were  protected  for  five  years  they 
then  could  compete  with  any  nation. 

Mr.  WELLS.  I  understood  you  to  say  that  previous  to  the  war  the 
docks  in  New  York  were  overtaxed,  and  that  ships  had  to  wait  for 
weeks  for  their  turns  to  come  on  the  dock;  but  that  now  that  is  re 
versed.  Is  not  that  because  iron  vessels  are  used  instead  of  wooden 
ones? 

Mr.  SIMPSON.  That  is  somewhat  the  cause,  but  not  entirely.  It  is  not 
that  we  cannot  put  an  iron  ship  on.  Our  government  has  never  pro 
tected  our  iron  ship-building,  and  the  foreigners  have  taken  that  busi 
ness  from  us ;  and  for  that  reason  our  docks  are  lying  idle. 

Mr.  WELLS.  Is  it  not  a  fact  that  one  steamer  will  do  the  business  of 
four  or  live  vessels  in  the  European  trade,  and  will  at  the  same  time  last 
two  or  three  times  as  long  without  repairs J? 

Mr.  SIMPSON.  I  do  not  think  that  one  steamer  will  do  the  business  of 
four  sailing  vessels.  A  Liverpool  packet  ship  generally  makes  the 
round  voyage  in  from  seventy-five  to  ninety  days,  and  the  steamer 
takes  on  an  average  about  five  weeks  to  make  the  round  voyage.  The 
steamers  take  the  place  of  a  little  over  double  the  number  of  sailing 
ships. 

Mr.  WELLS.  Do  you  know,  of  your  own  knowledge,  the  cost  of  build 
ing  steam  vessels  in  this  country  ? 

Mr.  SIMPSON.  No,  sir.  Of  course  the  cost  varies  somewhat.  I  think 
that  we  spend  more  money  on  our  merchant  ships  in  finish  and  style 
than  is  generally  spent  on  merchant  ships  of  other  countries,  and  of 
course  they  cost  more  on  that  account.  But  if  foreigners  were  to  build 
ships  of  the  same  materials  and  finish  that  we  do,  we  having  a  draw 
back  on  the  materials,  I  think  we  could  build  the  vessel  for  less  than 
they  can. 

Captain  J.  B.  COYLE,  president  of  the  Portland  Steam  Packet  Company, 
said  that  he  was  interested  in  coasting  steamers,  and  that  they  now  cost 
nearly  double  what  they  did  before  the  war,  on  account  of  the  high 
duties  levied  on  everything.  Then,  again,  if  they  got  the  steamers, 
they  were  taxed  to  death  to  run  them.  Every  little  thing  that  could  be 
stuck  on  in  the  way  of  taxes  was  stuck  on.  The  tonnage  dues  were  in 
creased.  They  had  to  pay  for  every  passenger  they  carried,  so  that 
after  they  paid  all  the  government  dues  the  owners  had  very  little  left, 
and  the  consequence  was  that  people  were  going  out  of  that  kind  of 
business. 


150  NAVIGATION    INTERESTS. 

Mr.  CALKIN.  You  think  that  the  coasting  trade  should  be  relieved  by 
the  remission  of  duties  and  taxation  ? 

Mr.  COYLE.  Yes,  sir. 

Mr.  CALKIN.  The  public  generally  would  be  relieved  by  it? 

Mr.  COYLE.  Certainly.  If  we  were  relieved  we  could  do  better  by  the 
traveling  public ;  we  could  take  freights  less  and  passengers  less. 

Mr.  WELLS.  Are  you  taxed  more  onerously  than  railroads  are  ? 

Mr.  COYLE.  I  think  so.  I  think  that  the  government  discriminates 
against  floating  property.  On  all  our  coasting  steamers,  if  we  take  an 
alien  and  carry  him  to  Boston,  we  must  pay  two  dollars  a  head  upon 
him ;  but  if  he  goes  by  railroad,  he  goes  free.  The  English  vessels  carry 
their  paupers  and  emigrants  into  Canada,  and  they  come  down  here  on 
the  railroads  free.  But  if  one  of  our  coasting  steamers  brings  them 
here,  she  has  to  be  taxed  so  much  a  head  for  them.  That  is  one  thing 
against  us  which  presses  pretty  hard  upon  steamboats.  The  moment 
we  get  into  port  a  revenue  officer  comes  on  board  of  us,  and  every  man 
and  woman  who  is  an  alien  is  marked  and  has  to  be  paid  for.  Queen 
Victoria,  if  she  came  in  that  way,  would  have  to  pay  head  money.  But 
if  you  take  all  the  paupers  that  were  ever  raised  in  the  old  country 
and  send  them  here  by  railroad,  there  is  no  such  tax  levied. 

Mr.  WELLS.    Would  you  be  in  favor  of  repealing  the  navigation  laws  ? 

Mr.  COYLE.  If  you  took  the  duties  off,  I  certainly  would  not  be  in  fa 
vor  of  having  the  navigation  laws  repealed. 

Mr.  WELLS.  You  are  in  favor  of  encouraging  home  industry  ? 

Mr.  COYLE.  By  all  means.  I  think  that  is  our  strength  as  a  nation, 
particularly  in  our  seaports.  Our  best  men  are  drifting  to  the  West. 
A  great  many  of  them  are  leaving  our  seaports,  particularly  our  mechan 
ics,  who  are  the  bone  and  muscle  of  the  country. 

Mr.  WELLS.  Do  you  not  think  that  if  that  law  were  repealed,  and  if 
American  merchants  were  allowed  to  go  abroad  and  buy  their  vessels, 
it  would  have  a  tendency  to  drive  all  the  mechanics  of  the  country  out 
the  business  ? 

Mr.  COYLE.  Certainly. 

Captain  CYRUS  STURDIV ANT  made  some  remarks  in  favor  of  removing 
the  duties  from  the  materials  entering  into  the  construction  of  ships, 
and  thus  encouraging  ship-building.  He  trusted  that  Congress  would 
give  the  ship-building  and  ship-owning  interest  some  relief,  and  thus 
prevent  the  best  men  of  Maine  from  going  elsewhere  for  a  living.  As  to 
steamboats  they  were  taxed  to  death.  They  had  to  get  their  license 
renewed  every  year  and  to  pay  thirty  cents  on  the  ton  for  new  measure 
ment.  Then  the  internal  revenue  collector  exacted  two  and  a  half  per 
cent,  on  all  the  income  they  receive  from  passengers;  and  when  the 
season  came  round  they  had  to  pay  exorbitant  prices  for  coal.  He  hoped 
that  coal  would  be  permitted  to  come  in  free,  and  said  that  unless  the 
ship-owning  and  ship-building  interests  had  some  relief  in  this  direction 
all  engaged  in  them  would  have  to  emigrate  elsewhere. 

Mr.  PUTNAM,  mayor  of  the  city,  remarked  that  although  Portland  was 
a  leading  ship-building  port  in  the  State,  it  was  deeply  interested  in 
navigation,  and  he  thanked  the  committee  for  the  patient  labor  with 
which  it  was  investigating  this  matter.  He  trusted  that  the  report  of 
the  committee  would  convince  Congress  of  the  necessity  of  granting  the 
relief  so  earn  sstly  needed  by  the  great  interest  of  the  country,  ship 
building. 

The  committee  adjourned  to  meet  in  Philadelphia  on  the  1st  of  Decem 
ber  next. 


NAVIGATION    INTERESTS.  151 

PHILADELPHIA,  PA.,  December  2, 1869. 

The  committee  met  at  10  a.  m. 

Present,  Messrs.  Buffinton,  "Waslibum,  Morrcll,  and  Mr.  Lynch,  chair 
man.  Committees  appointed  by  the  Commercial  Exchange,  Board  ol 
Trade,  and  Ship-builders'  Associations,  of  Philadelphia,  Wilmington,  and 
Baltimore,  to  represent  those  associations,  were  present. 

FRANCIS  K.  COPE,  of  the  Commercial  Exchange,  Philadelphia,  stated 
that  there  was  no  business  coming  so  directly  in  competition  with  for 
eign  industry  as  the  shipping  interest.  A  foreign  vessel  will  encoimtei 
the  same  difficulties,  and  earn  the  same  freight  as  aji  American  vessel  in 
the  same  trade,  and  the  reason  why  we  cannot  compete  with  foreign 
vessels  must  be  either  from  the  increased  cost  of  building  American 
vessels  or  the  expense  of  sailing  them. 

With  regard  to  the  cost  of  building,  timber  is  cheaper  and  labor 
cheaper  in  the  provinces,  and  wooden  vessels  can  be  built  cheaper  there 
than  in  the  United  States.  It  is  also  true  that  iron  vessels  can  be  built 
at  Liverpool  and  on  the  Clyde  cheaper  than  Americans  can  build  them. 

After  the  first  outfit  of  a  vessel  her  expenses  are  very  nearly  the  same, 
whether  American  or  foreign.  If  she  has  to  undergo  any  repairs,  it  must 
be  at  the  next  port,  after  the  accident  or  disability  occurs,  whether  it  be 
in  a  foreign  country  or  our  own  ;  and  with  regard  to  wages  we  find  that 
the  rate  is  regulated  to  a  great  extent  by  the  wages  of  other  persons 
employed  in  other  branches  of  business ;  and  in  that  respect  a  great 
increase  has  taken  place  in  this  country  within  the  last  few  years.  Some 
twelve  or  fifteen  years  ago  the  rate  of  wages  of  seamen  in  this  country 
was  about  fifteen  dollars  a  month,  while  that  in  England  was  about  two 
pounds  ten  shillings.  At  the  present  time  we  are  paying  sailors  thirty 
dollars  per  month,  while  they  are  paid  in  England  about  two  pounds 
fifteen  shillings.  We  are  now  sailing  about  four  vessels  between  this 
port  and  Liverpool,  and  the  difference  between  the  cost  of  wages  we 
have  to  pay  and  the  cost  at  the  rate  paid  in  England  amounts  to  about 
twenty  thousand  dollars  a  year  for  the  four  vessels. 

Now,  as  to  the  cure  for  these  evils,  my  opinion  is  that  it  must  lie  in 
a  reduction  of  the  tariff,  which  will  reduce  the  price  of  everything. 

The  CHAIRMAN  inquired  whether  American  vessels  are  manned  with 
as  large  crews  as  foreign  vessels. 

Mr.  COPE  replied  there  was  not  necessarily  any  difference.  American 
vessels  are  frequently  better  manned  than  British,  but  that  is  a  mere 
question  of  economy.  Most  American  owners  consider  that  it  is  better 
economy  to  man  vessels  more  fully  and  make  quicker  passages  than  the 
British  vessels  make.  As  a  rule,  English  vessels  carry  more  appren 
tices  than  American,  but  not  larger  regular  crews.  As  a  general  rule 
now,  the  crews  of  American  sailing-vessels  are  perhaps  more  efficient 
than  those  of  English  vessels,  but  the  crews  of  British  steam-vessels  are 
generally  much  more  efficient  than  in  former  years. 

In  regard  to  the  wages  of  sailors,  the  rate  is  determined  by  the  port 
from  which  the  sailor  ships.  A  man  who  goes  out  in  an  Ainerican  ves 
sel  at  thirty  dollars  per  month,  and  leaves  his  vessel  at  Liverpool  or 
London,  and  again  ships  on  another  American  vessel,  must  do  vso  at 
a  much  lower  rate.  While  professedly  from  one-half  to  two-thirds  of 
our  American  crews  are  Ainerican  in  point  of  fact,  there  is  no  more  than 
one  American  to  five  or  six  foreigners.  If  you  oould  discharge  your 
crew  as  soon  as  you  reached  a  foreign  port  and  reship  a  crew  from  an 
English  port,  the  difference  in  the  cost  of  wages  would  amount  practi 
cally  to  very  little;  but  the  law  requires  you  to  carry  your  crew  for  vho 
round  trip,  unless  they  leave  voluntarily. 


152  NAVIGATION   INTERESTS. 

The  CHAIRMAN  inquired  whether,  if  we  could  build  our  ships  as  cheaply 
as  foreign  ships  are  built,  we  could  compete  for  the  carrying  trade  of  the 
world. 

Mr.  COPE  replied  that  that  was  his  opinion  ;  certainly  if  the  tariff  were 
reduced  so  as  to  reduce  the  rate  of  wages. 

Mr.  MORRELL  asked  whether  that  remedy  would  not  be  worse  than 
the  evil. 

Mr.  COPE  responded  that  that  was  for  the  committee  to  judge.  We 
have  lost  our  commerce  to  a  great  extent,  and  are  losing  more  every 
year.  No  doubt  a  part  of  it  would  be  regained  by  a  return  to  specie 
payment,  and  he  did  not  know  of  any  remedy  short  of  that  and  a  reduc 
tion  of  the  tariff.  He  wished,  however,  in  this  matter  to  be  understood 
as  speaking  for  himself  alone,  and  not. for  the  committee  which  he  repre 
sented.  It  seemed  to  him  that  if  you  are  to  protect  one  interest  and 
then  to  protect  another  to  counteract  that,  there  would  be  no  end  to  it, 
It  was  the  high  price  of  wages,  the  high  price  of  food,  and  the  high  price 
of  everything  else  which  was  in  the  way  of  our  regaining  our  old  pros 
perity  in  respect  to  the  shipping  interest. 

Mr.  WASHBURN  inquired  whether  woolen  goods  and  breadstuff's  were 
not  now  as  cheap  as  before  our  departure  from  a  specie  basis. 

Mr.  COPE  replied  that  food  was  as  cheap,  but  that  woolen  goods  were 
not  as  cheap  in  this  country  as  in  England  and  France. 

The  CHAIRMAN  asked  whether  the  labor  employed  in  the  old  country 
was  as  efficient  as  that  employed  in  this,  and  whether  the  greater  skill 
of  our  mechanics  did  not,  to  a  certain  extent,  overcome  the  difference  oi 
price. 

Mr.  COPE  replied  that  it  furnished  a  certain  amount  of  compensation 
without  doubt,  but  there  was  not  the  same  difference  there  used  to  be, 
nor  was  there  the  same  difference  in  the  vessels  produced  in  the  two 
countries,  British  steam  vessels  being  now  much  superior  to  what  they 
used  to  be,  and  our  officers  of  steam  vessels  probably  not  quite  as  good 
as  in  former  years.  Business  having  declined  in  this  regard,  the  best 
class  of  men  had,  to  a  great  extent,  sought  other  occupations. 

The  CHAIRMAN  inquired  whether  the  masters  of  American  vessels 
were  not,  as  a  general  rule,  in  part  owners  of  the  vessels. 

Mr.  COPE  said  that  those  employed  in  the  coasting  trade  probably 
were. 

Mr.  WASHBURN  asked  whether  it  would  be  possible  so  to  construct 
lines  of  steamers  for  mercantile  purposes  as  to  be  readily  converted  into 
vessels  of  war  when  needed  for  that  purpose. 

Mr.  COPE  said  he  could  not  give  any  opinion  upon  that  subject,  as  he 
had  paid  no  attention  to  the  building  of  iron  vessels. 

Mr.  HENRY  WINDSOR,  of  the  Philadelphia  Board  of  Trade,  remarked 
that  he  had  no  doubt  steamers  could  be  built  suitably  for  both  purposes ; 
it  being  true  of  modern  war  steamers  that  only  a  few  guns  were  required, 
and  those  of  long  range,  and  that  it  might  be  practicable  to  devote  a 
portion  of  the  very  large  amount  now  expencfed  on  ships  of  war  for  the 
purpose  of  building  mercantile  vessels  capable  of  being  converted  into 
naval  vessels  in  time  of  Avar. 

HENRY  K.  EDMUNDS,  chairman  of  committee  of  ship-owners  for  Penn 
sylvania,  New  Jersey,  and  Delaware,  said  he  intended  to  have  prepared 
statistics  and  statements  affecting  the  shipping  interest  of  the  country, 
but  having  failed  to  receive  the  notice  sent  him,  he  had  been  unable  to 
do  so.  The  association  with  which  he  was  connected  was  more  directly 
interested  in  the  coasting  trade  than  in  the  foreign  ocean  mercantile 
service,  and'he  knew  comparatively  little  in  regard  to  building  ships  for 


NAVIGATION    INTERESTS.  153 

foreign  commerce.  It  was  found  in  building  vessels  for  the  coasting 
trade  that  an  onerous  tax  was  encountered  on  all  materials  from  the 
commencement  of  construction  until  the  vessel  was  ready  to  go  to  sea. 
Everything  entering  into  the  construction  of  a  vessel  was  taxed.  If  the 
tax  was  taken  off  vessels  could  be  built  profitably  in  this  country,  although 
they  might  not  be  built  quite  as  cheaply  as  in  Europe;  yet  American 
shippers  would  prefer  to  employ  vessels  sailing  under  an  American  reg 
ister.  Another  difficulty  to  be  met  with  was,  however,  in  the  fact  that 
all  important  British  foreign  lines  of  steamers  were  subsidized  by  that 
government;  in  fact,  Great  Britain  had  subsidized  almost  every  line  of 
ocean  steamers  which  had  asked  for  it,  and  this  country  had  avowed 
her  mails  to  be  carried  in  foreign  bottoms  simply  because  the  govern 
ment  is  not  willing  to  lend  a  helping  hand. 

It  seemed  to  him  very  feasible  to  construct  mercantile  vessels  which 
should  be  capable  of  being  converted  into  war  vessels  in  time  of  war, 
although  until  the  suggestion  was  made  by  Mr.  Washburn  to-day  it 
never  had  occurred  to  him.  Labor  in  Europe  was  much  cheaper  than 
in  this  country,  but  the  men  employed  do  not  work  nearly  so  intelligently; 
they  are  merely  men  driven  around  by  masters  like  machines,  while  in 
our  country  a  majority  of  our  workmen  employed  on  every  grade  of 
work  were  men  of  more  or  less  intelligence. 

The  association  with  which  Mr.  Edmunds  was  connected  has  applied 
itself  more  particularly  to  get  rid  of  such  taxation  as  in  their  judgment 
was  not  only  onerous  but  unlawful,  such  as  half  pilotage  and  harbor 
masters'  fees,  and  charges  of  that  kind,  where  no  service  is  rendered. 
They  had  already  succeeded  in  procuring  a  decision  of  the  courts  that 
harbor-masters'  fees  were  illegal,  and  they  were  now  testing  the  question 
in  regard  to  half  pilotage,  which  was  required  to  be  paid  by  every  vessel 
hailed  by  a  pilot,  although  the  services  of  a  pilot  were  not  required. 
This  tax  was  considered  especially  onerous  to  parties  engaged  in  the 
coasting  trade. 

The  CHAIRMAN  inquired  whether  the  matter  of  the  cost  of  repairing 
vessels  had  been  brought  to  the  attention  of  this  association. 

Mr.  EDMUNDS  said  there  was  great  difference  in  the  cost  of  repairs. 
A  vessel  in  the  neighborhood  of  Galvestonor  New  Orleans  might  almost 
as  well  be  given  away  as  to  undertake  to  pay  the  cost  of  repairs  in  those 
ports.  It  was  generally  found  cheaper  to  float  her  back  to  Philadelphia. 

PHILIP  FiTZPATRick,  also  a  member  of  the  committee  of  ship-own 
ers,  stated  that  since  1853  he  had  been  connected  with  a  house  for  which 
a  great  many  vessels  had  been  built.  In  his  opinion  if  the  cost  of  build 
ing  could  be  reduced  twenty  or  twenty -five  per  cent.,  this  branch  of  in 
dustry  would  again  revive.  He  had  been  connected  with  foreign  trade, 
but  had  been  compelled  to  discontinue  it  and  engage  altogether  in  the 
coasting  trade.  He  had  conversed  with  builders  of  foreign  vessels,  and 
was  of  the  opinion  that  the  difference  in  the  cost  of  construction  in  this 
country  and  Great  Britain  was  about  thirty  per  cent.  But  if  twenty  or 
twenty -five  per  cent,  could  be  taken  off,  the  superiority  of  American 
vessels  would  enable  our  ship-builders  again  to  commence  the  construc 
tion  of  ships. 

The  CHAIRMAN  inquired  what  effect  the  employment  of  a  large  number 
of  men  in  the  navy  yard  in  Philadelphia  had  upon  the  mechanics  of  the 
city  not  so  employe!. 

Mr.  FITZPATRICK  replied  that  when  there  was  plenty  of  work  in  the 
navy  yard  the  best  mechanics  went  there,  and  only  scrubs,  or  the  poor 
est  class  of  workmen,  could  be  obtained  by  private  parties. 


154  NAVIGATION   INTERESTS. 

The  CHAIRMAN  asked  what  effect  the  adoption  of  the  eight-hour  la\v 
had  upon  the  men  employed  outside  of  the  navy  yard. 

Mr.  FITZPATRICK  replied  that  the  effect  was  very  injurious  5  that  men 
outside  were  exceedingly  anxious  to  get  employment  in  the  navy  yard 
for  the  purpose  of  obtaining  the  benefit  of  two  hours  a  day  less  labor, 
and  they  would  go  hunting  around  for  the  influence  of  every  person 
who  was  supposed  to  be  able  to  give  any  assistance  in  getting  employ 
ment  in  the  navy  yard. 

Mr.  LYNCH  asked  whether  the  rates  paid  in  the  navy  yard  were  not 
regulated  by  rates  outside. 

Mr.  FITZPATRICK  said  that  was  the  law,  but  the  practice  was  exactly 
the  reverse,,  and  that  it  operated  very  much  to  the  prejudice  of  private 
parties  employing  this  class  of  labor  outside. 

The  CHAIRMAN  inquired  what  the  effect  would  be  of  allowing  ship- 
stores  being  taken  in  bond,  as  they  are  in  Great  Britain  and  some  others 
of  the  European  nations. 

Mr.  FITZPATRICK  replied  that  it  would  be  an  assistance,  and  in  his 
opinion  commerce  ought  to  be  assisted  in  some  way  by  the  government. 
We  might  not,  if  our  vessels  were  built  as  cheaply,  be  able  to  compete 
with  foreigners  in  sailing  them ;  but  as  a  general  thing  our  vessels  made 
quicker  voyages  and  were  preferred  over  foreign  vessels.  In  time  of 
war  preference  was  given  to  English  vessels  in  consequence  of  less  rates 
of  insurance.  Whenever  the  cost  of  living  was  cheaper  the  price  of 
wages  would  come  down.  Men  could  not  work  cheap  while  the  cost  of 
living  was  so  high. 

Mr.  WASHBURN  asked  how  much  it  would  reduce  the  cost  of  ship 
building  if  the  duties  were  remitted  upon  all  articles  entering  into  their 
construction. 

Mr.  EDMUNDS  thought  it  would  probably  work  a  reduction  of  twenty 
per  cent.  Wood  was  much  cheaper  in  the  Provinces,  although  the  tim 
ber  here  is  better ;  and  we  could  afford  to  pay  a  little  more  than  the  cost 
of  building  there  in  consequence  of  the  preference  given  to  American 
vessels. 

Mr.  COPE  remarked  that,  to  give  some  idea  of  the  difference  in  the 
cost  of  repairs  in  this  country  and  Europe,  he  would  state  that  a  short  time 
ago  his  house  had  a  vessel  repaired  in  Liverpool.  On  the  return  of  the 
vessel  his  carpenter  made  an  estimate  of  the  amount  the  same  repairs 
would  have  cost  in  Philadelphia,  and  reported  that  the  work  had  been 
done  for  one-third  less  than  it  ought  to  have  cost  in  this  country, 
although  the  timber  used  had  to  be  carried  from  this  country  to  England. 

The  CHAIRMAN  asked  whether  on  account  of  this  increased  expense 
of  repairs  it  was  customary  to  repair  vessels  engaged  in  a  foreign  trade 
in  a  European  country  as  far  as  possible. 

Mr.  COPE  replied  that  such  was  the  custom ;  that  in  the  instance  just 
referred  to  his  house  had  saved  five  thousand  dollars  by  having  the 
repairs  made  in  Liverpool. 

HENRY  WINDSOR,  of  the  Philadelphia  Board  of  Trade,  said  he  would 
only  refer  to  one  of  the  causes  for  the  decline  of  the  American  shipping 
interest,  which  was  the  great  change  that  had  taken  place  within  the 
last  few  years  in  the  increased  number  of  steam  ocean-going  vessels. 
Formerly  the  preference  was  given  to  American  sailing  vessels,  in  con 
sequence  of  their  greater  speed  and  the  superior  energy  of  their  mas 
ters  and  crews.  Now,  for  the  same  reasons,  preference  was  given  to 
steamers,  which  secured  nearly  all  the  better  class  of  freights,  while  our 
American  sailing  vessels  were  compelled  to  take  freights  formerly  re 
jected  by  them  and  carried  in  English  vessels.  In  fact,  nothing  is  left 


NAVIGATION    INTERESTS.  155 

to  us  except  the  lowest  class  of  freights  formerly  carried  by  foreign 
ships;  and  that  is  a  difficulty  that  cannot  be  removed  by  any  legislation 
in  regard  to  sailing  vessels ;  it  must  be  done  by  lines  of  ocean  steam 
ships. 

It  is  also  true  that  the  ^English  have  of  late  years  constructed  their 
steamships  from  much  better  models  than,  formerly,  and  that  they  have 
evinced  greater  energy  and  brought  themselves  more  upon  an  equality 
with  our  masters  and  crews  than  formerly,  and  the  result  has  been  that 
almost  all  the  foreign  trade  worth  having  has  gone  into  the  hands  oi 
foreigners ;  and  it  is  not  only  a  matter  of  importance  with  us  in  regard 
to  the  carrying  trade,  but  it  is  also  true  that  the  commerce  of  the  world 
follows  to  a  great  extent  the  carrying  trade,  and  foreigners  will  soon 
have  control  of  the  commerce  of  the  world  on  land  as  well  as  on  the 
ocean,  unless  something  is  done  to  revive  our  shipping  interest. 

A  remission  of  the  duties  on  imported  articles  entering  into  the  con 
struction  of  ships,  and  a  subsidy  upon  those  of  American  production 
used,  would  to  a  certain  extent  remedy  the  difficulty.  Unfortunately, 
the  manufacturers  of  the  country  think  their  interest  is  directly  opposed 
to  that  of  the  ship-owners  of  the  country.  Such  is  not,  in  fact,  the  case. 
The  difficulty  is  that  the  nature  of  the  shipping  interest  is  exceptional. 
We  can  protect  our  domestic  industry  on  our  own  soil  by  a  tariff;  by 
the  prohibition  of  imports  if  they  think  proper ;  but  we  can  give  no 
such  protection  to  the  American  shipping  interest,  because  the  ocean  is 
the  great  common  field  for  all  nations ;  and  if  we  assist  our  ship-owners 
to  compete  with  foreign  nations  it  must  be  by  reducing  the  cost  of 
building  ships  and  the  cost  of  running  them.  If  we  cannot  do  it  in  that 
way  it  cannot  be  done  at  all.  Give  us  the  same  privileges  given  by 
the  British  government  to  their  ship-owners,  and  if  we  cannot  get  our 
share  of  the  carrying  trade  we  do  not  deserve  to  have  it ;  but  the  same 
principle  applied  for  the  protection  of  American  industry  can  be  applied 
to  the  shipping  interest,  which  is  a  branch  of  American  industry  as 
much  as  any  other.  It  is  very  plain  that  it  must  be  applied  in  a  differ 
ent  way,  but  there  is  no  reason  why  the  advocates  of  protection  to 
American  industry  should  not  be  in  favor  of  giving  protection  to  this 
branch  of  industry  because  it  must  be  reached  through  a  different 
process.  There  is  no  departure  from  the  principle ;  it  is  merely  a  differ 
ence  of  application. 

Mr.  LYNCH  remarked  that  at  the  commencement  of  the  war  we  were 
increasing  our  foreign  tonnage  more  rapidly  than  Great  Britain  was  hers, 
and. asked  whether  the  increase  of  steam  vessels  from  1850  to  18CO  was 
not  about  as  great  as  since  that  time. 

Mr.  WINDSOR  said,  perhaps  so,  but  during  the  war  the  British  and 
other  foreign  nations  got  possession  of  our  foreign  trade,  and  it  is  now 
very  difficult  to  oust  parties  who  have  possession. 

It  is  also  true  in  regard  to  the  increased  efficiency,  relatively,  of  the 
crews  of  British  vessels  that,  during  the  war,  our  foreign  commerce  hav 
ing  been  almost  destroyed  and  our  sailors  diverted  to  other  branches  of 
industry,  our  capitalists  now  find  more  profitable  avenues  of  invest 
ment. 

It  may  also  be  worth  stating  that  the  capitalists  of  this  country  are 
not  willing  to  engage  in  the  carrying  trade  for  the  same  profits  as  will 
satisfy  those  of  other  nations.  The  rate  of  interest  is  higher  here  and 
our  people  demand  larger  profits.  English  ship-owners  are  satisfied, 
after  making  due  allowance  for  the  deterioration  and  wear  and  tear  of 
their  vessels,  with  a  net  profit  of  six  per  cent,  upon  their  profit,  while 


156  NAVIGATION    INTERESTS. 

American  ship-owners  are  not  satisfied  with  that  rate,  because  they  can 
do  better  in  their  investments. 

Mr.  WASHBURN  inquired  if  the  attention  of  the  witness  had  been 
drawn  to  the  effect  of  opening  the  Suez  Canal  upon  the  shipping  inter 
est  of  this  country  or  of  the  world. 

Mr.  WINDSOR  said  that  his  attention  had  not  been  drawn  much  to  that 
subject,  the  success  of  that  enterprise  being  problematical.  If  in  the 
event  it  proves  successful,  it  will  have  an  important  influence  upon  the 
carrying  trade  of  the  world ;  much  fewer  vessels,  certainly  for  the  Euro 
pean  trade,  will  be  required.  Whether  it  will  also  affect  our  trade  with 
the  East  Indies  is  uncertain.  The  navigation  of  the  seas  beyond  the 
termination  of  the  canal  is  very  difficult. 

HENRY  TATUM,  also  of  the  committee  of  the  Philadelphia  Board  oi 
Trade,  remarked  that  in  18GO  William  S.  Lindsey,  of  London,  was  in 
this  country  and  appeared  before  the  different  boards  of  trade  on  our 
seaboard,  bringing  to  their  attention  a  good  many  things,  and  among 
others  he  placed  in  the  hands  of  the  Philadelphia  board  a  volume  con 
taining  a  large  mass  of  information  bearing  upon  this  subject.  This 
volume,  Mr.  Tatum  said,  he  would  place  in  the  hands  of  the  committee, 
it  being  a  report  made  by  Mr.  Lindsey  to  Parliament  upon  the  subject 
of  shipping  in  18GO.  Mr.  Tatum  had  been,  during  the  war,  very  active 
in  urging  upon  £be  government  the  acceptance  of  League  Island,  for  the 
purpose  of  having  one  large  ship-yard  in  this  country.  He  was  satis 
fied  that  the  idea  of  constructing  merchant  ships  of  such  models  as  to 
be  available  as  ships  of  war  was  a  pure  fallacy.  Vessels  so  constructed 
as  to  be  serviceable  in  the  merchant  marine  could  only  be  made  availa 
ble  in  war  as  privateers. 

Mr.  TATUM  also  stated  that  there  was  no  port  on  our  coast  which  is 
not  to-day  at  the  mercy  of  the  British  navy.  Neither  New  York,  Bos 
ton,  nor  any  other  port  has  any  adequate  means  of  defense  against  such 
war  vessels  as  the  British  government  may  send.  The  whole  policy  of 
the  British  government  during  the  war  was  to  destroy  our  commerce, 
and  in  that  enterprise  they  were  very  successful,  and  Mr.  Lindsey,  prob 
ably,  as  much  as  any  other  man,  was  instrumental  in  bringing  about 
that  result.  For  instance,  what  motive  could  the  rebels  have  in  send 
ing  out  one  of  their  best  vessels  at  a  very  large  expense  when  they  had 
no  money  to  spare,  for  the  purpose  of  destroying  our  northwestern  whale 
trade?  Mr.  Tatum  believed  it  was  done  with  the  secret  service  money 
of  Great  Britain.  The  number  of  vessels  and  the  number  of  the  crews 
which  on  the  average  were  at  Honolulu  was  well  known  in  Great 
Britain,  and  it  was  known  that  sailors  belonging  to  these  ships  were  the 
best  seamen  in  the  world,  and  if  hostilities  had  occurred,  as  there  was  at 
one  time  imminent  danger,  between  the  United  States  and  Great  Britain, 
one  of  the  first  acts  done  by  Great  Britain  would  have  been  to  have 
destroyed  that  fleet  of  vessels. 

Mr.  TATUM  believed  that  if  the  American  ship-builders  were  placed 
upon  the  same  basis  as  those  of  Great  Britain,  ships  could  be  profitably 
constructed  in  this  country.  With  a  drawback  on  all  material  entering 
into  the  construction  of  ships  our  ship-builders  could  profitably  con 
struct  ocean-going  vessels,  as  may  be  seen  from  the  fact  that  the  builders 
at  Wilmington,  Delaware,  and  at  Chester,  Pennsylvania,  now  compete 
very  closely  with  foreign  ship-builders. 

CHARLES  H.  CRAMP,  engaged  in  ship-building,  said  that  Great  Britain 
now  had  the  advantage  of  this  country  in  the  carrying  trade  of  the 
world,  not  because  the  vessels  constructed  were  superior  to  ours  in 
model,  but  because  of  the  great  superiority  of  their  marine  engines. 


NAVIGATION    INTERESTS.  157 

The  English  have  built  the  finest  and  best  marine  engines  in  the  world. 
We  have  always  been  inferior  to  her  in  that  respect.  Our  models  are 
the  best,  but  our  marine  engines  are  poor  copies  of  British  engines. 
The  British  government  have  developed  their  iron  ship-building  interest 
by  encouraging  the  skill  of  private  ship-builders,  notwithstanding  her 
enormous  ship-yards.  Ninety  per  cent,  of  her  iron-clads  have  been  con 
structed  at  private  establishments.  It  requires'  very  little  capital  to 
embark  in  the  building  of  wooden  ships.  Since  the  commencement  of 
the  war,  the  house  with  which  Mr.  Cramp  was  connected  has  been 
engaged  in  building  both  iron  and  wooden  vessels,  but  has  built  no 
foreign  iron  steam-vessels  since  1857,  and  none  have  been  built  in  Phila 
delphia,  since  that  time.  The  same  class  of  mechanics  who  in  1857 
worked  for  a  dollar  and  seventy-five  cents  a  day,  now  receive  three 
dollars  a  day.  With  the  materials  entering  into  ship-building,  our  ship 
builders  can  compete  with  those  in  foreign  countries  in  building  iron 
ships  $  and  very  few  wooden  vessels  will  hereafter  be  built,  iron  ships 
being  superior  in  every  respect.  Mr.  Cramp's  firm  had  built  the  largest 
ships  ever  built  in  Philadelphia.  The  ship  Chamberlain,  which  in  1855 
was  built  for  sixty  dollars  per  ton,  can  now  be  built  for  eighty  dollars, 
and  an  iron  ship  of  the  same  model  for  about  one  hundred  and  ten  dol 
lars.  Timber  is  becoming  higher  and  scarcer  every  day,  and  that  is  one 
reason  for  stating  that  the  time  for  building  wooden  ships  has  gone  by. 
It  is  impossible  to  state  the  length  of  time  iron  vessels  will  last.  Some 
of  the  first  built  in  England  are  still  in  good  condition.  The  character 
of  American  wooden  ships  has  been  reduced  every  year  in  order  to  com 
pete  with  the  province-built  vessels.  There  is  a  difference  of  about 
thirty  dollars  a  ton  between  the  cost  of  iron  and  wooden  vessels,  but  the 
iron  is  really  cheaper  in  the  end.  To  enable  the  business  of  building 
iron  ships  to  become  firmly  established  in  this  country,  a  very  large 
amount  of  very  large  machinery  must  be  supplied,  and  some  aid  from 
the  government  must  be  rendered.  Great  demoralization  among  the 
mechanics  in  the  government  yards  has  been  produced  by  the  frequent 
changes  made  for  political  reasons.  At  the  beginning  of  the  war  nobody 
but  republicans  could  be  employed.  During  the  war  they  were  turned 
out  and  all  democrats  put  in ;  and  since  then  still  another  change  has 
taken  place,  and  the  character  of  the  workmen  employed  has  been  con 
stantly  running  down.  Large  numbers  of  men  at  times  are  forced  upon 
the  yards  by  politicians  when  there  is  no  work  for  them  to  do.  This 
has  become  a  great  evil,  and  Mr.  Cramp  hoped  the  committee  would 
give  it  their  attention.  The  eight-hour  system  has  also  done  very  much 
to  render  the  mechanics  not  in  government  employ  dissatisfied,  and  it 
has  not  improved  the  condition  of  anybody.  Most  of  the  best  men  were 
opposed  to  it  in  the  first  place,  and  it  was  only  supported  by  some 
blathersk.vtes  who  were  good  talkers  but  bad  mechanics.  The  repeal  of 
that  law  is  required.  Men  do  not  work  as  hard  now  as  they  used  to — 
so  much  more  machinery  is  employed. 

Mr.  MORIIELL  inquired  what  was  the  average  rate  of  duty  now  paid 
upon  materials  entering  into  the  construction  of  ships. 

Mr.  CRAMP  supposed  the  average  rate  would  be  about  forty  per  cent., 
and  if  our  ship-builders  could  be  relieved  from  that  they  could  compete 
successfully  with  foreign  builders.  The  difference  in  the  cost  of  labor 
would  be  overcome  by  the  superiority  of  American  mechanics.  The 
British  workmen  are  a  degraded  set  of  beings,  and  the  course  pursued 
by  their  employers  toward  them  tends  still  further  to  degrade  them. 
Mr.  Cramp  had  been  informed  that  their  men  were  frequently  paid  off 
at  taverns,  and  that  it  was  distressing  to  see  women  and  children  wait- 


158  NAVIGATION    INTERESTS. 

ing-  to  get  wliat  remained  after  a  portion  of  the  wages  had  been  spent 
at  the  tavern.  It  would  not  be  desirable  to  bring  the  wages  of  our  men 
to  as  low  a  rate  as  those  paid  in  England,  if  it  could  be  done.  American 
iron  in  the  construction  of  iron  vessels  would  always  be  preferred  at  the 
same  price  as  foreign.  It  would  be  very  inconvenient  to  send  abroad  for 
the  iron  plates.  It  is  necessary  to  get  the  form  of  every  plate  before  it 
is  ordered,  and  if,  after-  doing  that,  we  must  send  abroad  to  have  them 
made,  very  great  inconvenience  and  delay  would  result.  It  was  admitted, 
too,  that  American  iron  is  of  much  better  quality  for  this  purpose  than 
English.  If  the  plates  are  of  the  same  thickness  and  the  same  price, 
you  get  a  great  deal  more  valuable  article  for  the  money  in  using  Ameri 
can,  iron.  The  same  thickness  of  plates  which  the  English  adopt  is  not 
necessary  if  American  iron  is  used,  although  the  Lloyds  will  not  insure 
unless  the  vessel  is  built  according  to  their  standard.  It  is  an  advantage 
in  every  way  to  use  American  materials  in  the  construction  of  our  ships. 
The  reason  English  marine  engines  are  superior  to  ours  is  not  because 
our  workmen  are  inefficient,  but  because  they  are  more  cloister  engineers, 
as  we  call  them,  or  fancy  men.  The  engines  in  which  we  excel  are  the 
weak-beam  engines,  and  if  we  are  encouraged  a  little  by  the  government 
we  will  excel  them  in  the  construction  of  every  description  of  marine 
engines.  The  establishment  of  a  large  government  ship-yard  in  any 
city  is  a  calamity  to  that  city,  as  these  yards  are  now  managed. 

LEWIS  0.  MEDARA  stated  that  his  interest  had  been  mostly  in  charter 
ing  vessels.  He  had  always  given  the  preference  to  American'  vessels, 
because  more  care  was  taken  of  the  cargoes  and  less  time  consumed  on 
the  voyage.  During  the  war  he  was  obliged  to  charter  foreign-built  ves 
sels,  but  found  that  great  delay  and  long  voyages  was  the  result.  He 
knew  nothing  about  the  cost  of  constructing  vessels  except  what  he 
could  infer  from  the  repairs  made  upon  the  vessels  chartered.  The 
eight-hour  law  was  a  most  unfortunate  measure  for  the  government  to 
adopt,  and  has  affected  the  cost  of  repairing  vessels  very  much.  He  was 
not  able  to  say  whether  American -built  vessels,  if  they  could  be  profit 
ably  constructed  now,  could  be  sailed  as  cheaply  as  foreign  vessels. 
That  was  a  question  belonging  to  the  owner  of  the  vessel,  he  chartering 
the  vessel,  knowing  nothing  of  the  expenditures  or  disbursements.  He 
knew  that  American  vessels  made  their  return  voyage  in  much  shorter 
time  than  English  vessels.  The  vessels  chartered  by  him  were  employed 
principally  in  the  Cuban  and  South  American  trade. 

Captain  J.  S.  CLARK,  for  many  years  the  master  of  a  vessel,  remarked 
that  he  could  generally  get  work  done  cheaper  in  America  than  abroad. 
The  price  of  labor  was  less  in  England,  but  it  took  a  great  deal  longer 
time.  The  men  would  leave  their  work  first  to  get  their  beer,  then  their 
tobacco,  and  then  their  dinner,  and  accomplish  very  little  in  the  course 
of  the  day.  One  great  difficulty  was,  in  having  to  advance  moneys  to 
the  crews,  which  money  was  all  absorbed  by  persons  who  harbored  the 
sailors  on  shore. 

Another  difficulty  was  in  the  cost  of  provisions.  In  Europe  they  are 
allowed  to  take  goods  out  of  bond  for  use  on  ship-board.  When  in  Ant 
werp,  two  years  ago,  the  rope-rigging  of  his  vessel  was  taken  out,  and  an 
iron  rigging  put  in,  at  a  cost  of  nine  hundred  dollars  in  gold,  while  it 
would  have  cost  not  less  than  two  thousand  dollars  to  have  done  the 
same  work  in  this  country. 

Mr.  LYNCH  inquired  what  proportion  of  foreigners  were  ordinarily  in 
t?ie  crews  of  vessels. 

Mr.  CLARK  replied  that  very  often  there  would  not  be  one  native-born 
American  in  the  whole  crew,  although  a  large  portion  of  the  men  would 


NAVIGATION   INTERESTS.  159 

ship  as  Americans.  The  officers  are  generally  native-born  men.  We 
are  laboring  in  this  country  under  a  great  disadvantage  by  being  obliged 
to  ship  the  rubbish  of  Europe  under  the  name  of  American  seamen.  In 
Europe  there  is  a  black-list  of  seamen  kept  at  every  pert,  on  which  any 
seaman  misbehaving  during  the  voyage  is  entered,  and  the  result  i&  they 
get  good  men  there,  while  the  bad  men  come  to  this  part  of  the  world 
and  ship  on  our  vessels  as  Americans.  At  one  time,  before  the  war,  in 
a  crew  of  sixty,  Captain  Clark  said,  he  had  but  two  men  who  could  steer. 
Since  the  war  he  had  been  able  to  get  a  little  better  class  of  men.  An 
other  great  advantage  possessed  by  English  steamers  was  that  they  em 
ployed  their  men  at  so  much  a  week — the  men  finding  themselves.  He 
hoped  something  would  be  done  to  restore  the  prestige  of  American 
shipping  on  the  ocean  to  where  it  was  previous  to  the  war. 

JOHN  W.  EVERMAN,  engaged  in  shipping,  remarked  that  among  the 
difficulties  in  the  way  of  competing  with  other  nations  in  our  carrying 
trade,  was  the  great  amount  of  expense  imposed  upon  shippers,  for  which 
no  services  were  rendered.  The  port  warden  fees  were  not  now  collected, 
but  under  the  laws  of  Pennsylvania,  vessels  now  are  compelled  to  pay 
half-pilotage  if  they  do  not  take  a  pilot,  and  whole  pilotage  if  they  have 
an  assorted  cargo.  At  this  rate,  a  vessel  of  three  hundred  tons  has  to 
pay  thirty  dollars  for  going  past  the  breakwater,  although  she  employs 
no  pilot.  At  Norfolk  her  expenses  for  pilotage  would  be  about  one 
hundred  and  twenty  dollars,  whether  a  pilot  is  employed  or  not,  and  in 
Mobile,  one  hundred  and  forty  dollars,  or  one  hundred  and  fifty  dollars. 
These  charges  are  unjust. 

He  was  not  in  favor  of  allowing  vessels  from  the  Provinces  or  foreign 
ports  to  come  in  here  and  have  their  stores  placed  in  bond  in  the  cus 
tom-house  with  the  privilege  of  withdrawing  them.  For  instance,  a  ves 
sel  coming  from  Italy  will  deposit  at  the  rate  of  a  quart  of  wine  a  day 
for  each  man  on  board,  and  they  will  in  this  way  bring  in  fifteen  or 
twenty  thousand  gallons  of  wine  as  a  three-years'  supply,  and  then  go 
down  the  river  and  trade  it  off  for  anything  they  want. 

Pilotage  is  one  of  the  greatest  evils  our  coasting  trade  has  to  contend 
with,  although  it  is  less  in  Philadelphia  than  almost  any  other  city,  and 
the  owner  of  the  vessel  has  no  protection,  as  they  have  in  going  into  a 
port  in  Cuba,  and  any  other  foreign  ports  where,  if  the  pilot  sinks  the 
vessel,  the  government  pays  for  it.  Here,  there  is  no  such  provision, 
and  a  captain  coining  in  from  a  long  voyage,  understanding  the  river 
perfectly,  will  be  much  more  likely  to  take  a  vessel  safely,  because  he  is 
sober,  than  the  pilot,  who  is  lying  by  among  the  islands,  very  likely  in 
toxicated,  and  yet,  if  the  captain  does  not  hear  the  orders  of  the  pilot 
and  the  vessel  is  sunk,  the  insurance  will  not  be  paid.  The  general  prac 
tice  for  coasting  vessels  is  to  sail  them  on  shares,  the  officers  having  a 
proportion  of  the  earnings  of  the  vessel.  No  vessel  owner  wants  to  re 
duce  the  wages  of  the  men,  unless  the  cost  of  living  is  also  reduced.  A 
couple  of  years  ago,  Mr.  Ever  man  wrote  to  Montreal  to  ascertain  the  cost 
of  building  a  vessel  of  the  dimensions  given  by  him,  and  ascertained  that 
it  could  be  built  for  twelve  thousand  dollars.  He  found  that  it  cost 
about  twenty  to  twenty-five  per  cent,  more,  taking  gold  at  forty,  than  to 
build  it  here ;  but  an  American-built  vessel  would  sell  at  public  auction 
for  forty  or  fifty  per  cent,  more,  so  that  after  all  it  is  really  more  eco 
nomical  to  build  our  own  vessels. 

Mr.  MORRELL  asked  what  would  be  the  cost  of  building  a  schooner  of 
six  hundred  and  fifty  tons. 

Mr.  EVERMAN  thought  that  without  being  copper-fastened  she  would 
cost  twenty-eight  or  twenty-nine  thousand  dollars.  A  large  proportion 


160  NAVIGATION   INTERESTS. 

of  the  vessels  now  being  built  in  this  country  are  schooner-rigged,  and 
they  are  so  built  because  they  can  be  sailed  with  less  men  than  a  ship 
can.  A  very  large  number  of  three-masted  schooners  are  now  being 
built.  Almost  all  schooners  are  iron-fastened,  the  duty  on  copper  being 
so  heavy  that  the  cost  of  copper-fastening  is  too  great. 

JOHN  F.  STUMP,  formerly  harbor-master  at  Philadelphia,  and  after 
ward  engaged  in  the  custom-house,  was  under  the  impression  that  one 
of  the  great  difficulties  in  the  way  of  competing  with  foreign  ships  was 
the  difference  in  the  currency.  He  thought  the  difference  in  cost  between 
sailing  an  American  vessel,  or  an  English  or  German  vessel,  was  about 
fifty  per  cent. 

AFTEENOON  SESSION. 

The  committee  again  met  at  3  o'clock. 

WILLIAM  G.  GIBBONS,  ship-builder,  in  Wilmington,  Delaware,  stated 
that  for  the  past  four  years  the  business  of  the  firm  with  which  he  was 
connected  had  been  largely  engaged  in  building  iron  river  steamers  to 
be  used  on  the  rivers  in  South  America  and  Mexico;  having  constructed 
boats  for  nearly  ail  the  rivers  in  South  America  emptying  into  the 
Caribbean  Sea  or  Atlantic,  and  also  several  for  those  emptying  into 
the  Pacific.  The  reason  why  they  were  able  to  build  these  boats  in 
competition  with  the  English,  was  that  their  character  was  such  as 
to  make  them  unfit  to  cross  the  Atlantic,  the  English  builders  being 
required  to  take  them  to  pieces,  ship  them  over,  and  then  put  them 
together  again.  The  boats  were  shipped  by  St.  Thomas,  touching  at 
Demarara  and  various  points  on  the  coast,  and  had  all  passed  safely  to 
their  destination.  His  firm  had  never  succeeded  in  getting  an  order  to 
build  a  ship  lor  ocean  navigation  purposes.  They  had  recently  built,  for 
a  line  of  steamers  to  run  from  St.  Thomas,  two  screw  steamers  adapted 
to  passengers  and  freight,  of  about  seven  hundred  tons.  The  parties 
very  much  preferred  to  put  their  steamers  under  the  American  flag,  the 
company  being  composed  largely  of  citizens  of  New  York;  but  the  Eng 
lish  bids  were  about  twenty  thousand  dollars  lower  on  an  estimate  of 
one  hundred  and  twelve  thousand  dollars  for  each  vessel,  gold  being 
the  basis  in  each  case,  and  of  course  the  English  obtained  the  order. 
In  the  construction  of  iron  vessels  about  six-tenths  of  the  entire  cost  is 
labor,  and  four-tenths  material,  and  the  tax  now  required  to  be  paid 
upon  every  material  entering  into  the  construction  of  a  ship,  from  the 
laying  of  her  keel  until  she  is  finished,  is  a  matter  of  vital  consequence 
to  American  ship-builders.  Our  rates  of  labor  are  higher  than  those  in 
any  other  country  in  the  world,  and  this  has  compelled  our  people  to 
exert  their  ingenuity  for  machinery  and  mechanic  appliances  to  save  labor 
whenever  it  is  practicable.  We  have  always  excelled  both  the  English 
and  Scotch  in  this  respect,  and  we  have  only  been  able  to  compete  with 
them  by  economizing  labor  as  we  have  done  in  the  larger  use  of  machin 
ery,  but  they  buy  their  machinery  for  about  one-half  in  gold  what  it 
costs  us  in  currency.  For  instance,  forty -five  dollars  in  gold  will  buy  a 
ton  of  plate  or  bar  iron  in  England,  which  here  costs  eighty-eight  or 
ninety  dollars  for  plates  and  eighty-five  dollars  for  bars.  When  this  is 
worked  up  we  find  that  they  have  the  advantage  of  us  of  about  two- 
tenths  in  material.  If  the  firm  with  which  Mr.  Gibbons  was  connected 
could  get  iron  put  down  in  their  yard  at  the  prices  paid  by  the  English 
ship-builders,  they  could  furnish  ships  for  anybody,  and  would  give 
them,  their  orders  at  as  low  rate  as  the  English  or  Scotch  could  build 
them.  They  have  never  received  any  drawback  on  materials  used  in 
building  vessels  to  be  sent  out  of  the  country.  In  one  or  two  instances 


NAVIGATION    INTERESTS.  161 

the  excise  tax  had  been  remitted,  but  it  caused  more  trouble  to  obtain 
the  remission  than  the  saving- amounted  to. 

JOHN  TUCKER,  vice-president  of  the  Reading  railroad,  said  that  last 
winter  the  Reading1  Railroad  Company  contracted  for  two  iron  colliers, 
at  a  cost  of  fifty-nine  thousand  dollars  and  sixty  thousand  dollars, 
respectively.  He  sent  the  specifications  to  a  friend  in  London  to 
ascertain  at  what  price  they  could  be  duplicated  there.  The  first 
reply  was  that  they  would  not  build  a  collier  according  to  the  speci 
fications  given,  and  returned  their  criticisms  upon  the  specifications. 
After  my  reply  explaining  the  specifications  they  acknowledged  that 
the  colliers  would  be  quite  as  efficient  as  if  built  in  accordance  with 
their  usual  specifications.  They  then  sent  a  communication,  which  Mr. 
Tucker  said  lie  would  furnish  to  the  committee.  Since  that  time  the  Read 
ing  works  had  contracted  for  eight  more  steam  colliers,  of  larger  dimen 
sions,  to  be  built  at  Chester,  Pennsylvania,  where  the  first  two  were  con 
structed.  Taking  gold  at  thirty -three  and  one-third  per  cent.,  the  differ 
ence  between  the  cost  of  building  these  colliers  at  Chester  and  in  England 
would  be  about  four  thousand  dollars  each.  The  same  specifications 
were  furnished  to  the  American  and  English  builders.  American  iron 
is  much  stronger  than  English,  and  a  less  quantity  may  be  safely  used 
in  the  construction  of  an  iron  vessel.  One  of  the  colliers  built  last  sum 
mer  in  passing  Hell  Gate,  New  York  Harbor,  struck  a  rock,  cutting  about 
ten  feet  in  her  bottom.  The  vessel  wras  raised  and  the  injured  piece  of 
iron  was  exhibited  here,  attracting  some  attention.  In  accordance  with 
their  request,  that  strip  of  iron  was  sent  to  the  Lloyds'  underwriters,  in 
France,  as  a  specimen  of  the  superiority  of  American  iron,  and  since  that 
time  we  have  been  able  to  effect  our  insurance  there  at  ten  percent,  per 
annum  lower  than  we  were  doing  it  before.  Previous  to  that  time  the 
cost  of  insurance  was  about  eighteen  per  cent,  per  annum.  The  insurance 
is  now  effected  there  at  seven  and  one-half  per  cent.  The  first  two  vessels 
were  built  as  an  experiment  and  for  the  purpose  of  taking  coal  all  along 
the  coast.  For  this  class  of  vessels  the  cost  of  building  is  not  very  much 
more  than  on  the  other  side.  He  was  surprised  to  find  so  little  difference. 
In  fact,  taking  into  consideration  the  superiority  of  American  iron,  they 
are  really  built  cheaper  in  this  country  than  they  could  be  in  England. 
The  cost  of  building  those  now  ordered  is  one  hundred  and  five  thousand 
dollars  each  for  a  Ihousand-tou  collier.  Mr.  Gibbons  remarked  with 
regard  to  the  question  of  screw  colliers  just  referred  to,  that  it  was  the 
opinion  of  his  linn  the  prices  at  which  they  were  being  built  were  not 
remunerative.  His  firm  had  bid  for  the  same  vessels ;  but  their  bid  was 
very  much  higher.  In  regard  to  the  legislation  ship-builders  would  like 
to  have,  there  is  a  difference  of  opinion  among  different  parties ;  but  one 
thing  is  pretty  clear,  that  if  American  builders  can  obtain  their  material 
at  the  same  rates  paid  by  the  English  and  Scotch  builders  they  will  be 
able  to  compete  with  them  in  building  ships.  The  cost  of  labor  is  of 
course  greater  in  this  country,  but  the  additional  skill  obtained  more 
than  compensates  for  it.  The  English  have  old-fashioned  ideas.  The 
law  referred  to  by  Mr.  Tucker  just  now  speaks  of  two  engines,  and  they 
frequently  put  four  into  one  of  their  ships.  Our  ship-owners  mostly 
prefer  only  one  engine.  The  parties  of  whom  Mr.  Gibbons  had  already 
spoken,  who  desired  to  contract  for  building  ships  to  run  to  St.  Thomas, 
said  they  were  willing  to  give  considerable  more  money  to  an  American, 
than  to  an  English  builder,  for  the  reason  that  the  American  builders 
provided  greater  comfort  for  passengers  than  the  English,  and  passengers 
would  follow  the  route  which  wras  provided  with  the  most  comfort.  The 
boats  built  for  the  South  American  rivers  are  a  sort  of  cross  between  the 
11  N  I 


162  NAVIGATION    INTERESTS. 

Hudson  River  boat  and  the  Mississippi  Elver  boat.  They  are  side-wheel 
and  built  to  run  in  shoal  water.  The  peculiarity  of  the  climate  in  South 
America  is  such  as  to  require  very  different  accommodations  for  passen 
gers  from  anything  required  in  this  country.  The  boats  built  by  the 
English  for  those  rivers  are  of  a  different  model,  and  more  analogous  to 
those  used  during  the  war  for  running  the  blockade.  They  do  not  carry 
very  much  freight  and  are  exceedingly  expensive.  The  boats  built  in 
Wilmington  are  equally  as  fast,  draw  a  great  deal  less  water,  and  have 
made  a  great  deal  of  money  for  their  owners,  which  is,  after  all,  the  test 
of  success. 

In  regard  to  ocean  steamers  it  is  now  universally  considered  that  there 
is  a  great  advantage  in  screw  steamers  over  side- wheel  steamers,  for  the 
reason  that  in  rough  weather  it  very  often  happens  that  one  wheel  is  so 
much  submerged  as  U>  waste  almost  all  the  power  used,  while  the  other 
will  be  almost  out  of  water.  This  difficulty  is  obviated  to  a  certain 
extent  while  the  side- wheel  steamers  are  immensely  large,  as  in  case  of 
the  Pacific  mail  steamers  running  between  San  Francisco  and  Hong 
Kong,  but  these  ships  are  always  very  slow.  The  English  seem  to 
understand  the  principle  of  building  screw  ships,  building  them  very 
narrow  and  very  deep,  so  that  unless  the  sea  is  very  heavy  they  push 
their  way  across  the  ocean,  rolling  very  little  and  being  disturbed  very 
little  by  an  ordinary  sea. 

Another  difficulty  with  side- wheel  ships  is  that  in  a  voyage  from  New 
York  to  Southampton  you  must  load  the  vessel  with  coal  almost 
beyond  her  proper  capacity,  sinking  the  wheels  too  deep  in  the  water 
on  this  side,  and  leaving  them  about  four  feet  out  on  the  other  side  as 
the  coal  becomes  expended.  The  only  remedy  that  can  be  asked  by 
American  ship-builders,is  that  such  scheme  may  be  devised  by  which 
they  may  receive  their  materials  at  a  lower  rate  than  they  do  now.  It 
is  impossible  to  state  any  ordinary  rate  per  ton  for  building  an  iron  ship. 
The  vessels  are  so  different  in  their  construction,  and  so  many  different 
considerations  come  into  the  cost  of  constructing  different  models  of, 
vessels  are  built  upon  specifications,  and  taking  given  specifications,  we 
are  able  to  calculate  the  cost  by  the  number  of  pounds  of  iron  required. 
The  tonnage  is  of  course  determined  by  the  model  of  the  ship  itself  as 
much  as  by  the  size.  A  thousand-ton  iron  ship  built  according  to  the 
requirements  of  the  Lloyds,  with  reasonable  passenger  accommodation, 
would  probably  cost  one  hundred  and  fifty  or  one  hundred  and  sixty 
thousand  dollars.  The  colliers  spoken  of  have  very  limited  power,  and 
would  be  nowhere  if  employed  in  the  merchant  service.  For  instance, 
between  New  York  and  New  Orleans  they  have  a  cylinder  of  forty-four 
inches  of  diameter,  while  a  merchant  ship  of  the  same  capacity  would 
have  a  cylinder  of  sixty  inches.  Their  steam  power  is  accessory  only, 
but  they  are  strong,  first-rate  vessels  in  all  that  relates  to  their  carrying 
capacity.  The  English  make  their  passenger  ships  cost  just  about  as 
much  as  our  American  ships.  It  is  only  on  their  coarse,  common  work 
that  they  beat  us.  Where  a  great  amount  of  labor  is  to  be  expended  on 
tine  work  we  can  beat  them;  because  they  have  to  import  their  lumber, 
and  because  they  use  hand  labor  for  a  very  large  portion  of  their  fine 
work,  for  which  we  employ  machinery.  Take  the  Adriatic,  for  instance, 
one  of  the  Collins  line  of  steamers  now  owned  in  Russia.  Her  inside 
work  was  a  complete  mass  of  elegant  carving,  which  could  not  be  done 
in  England  for  anything  like  the  amount  it  cost  in  New  York.  The 
same  may  be  said  of  the  St.  John's  and  Dean  Richmond,  on  the  Hudson 
River,  or  of  the  Providence  steamers.  All  this  work  is  now  woven  out 
by  machinery  and  costs  very  little.  Ship-builders  would  like  to  have 


NAVIGATION    INTERESTS.  163 

the  tariff  on  iron  taken  completely  off,  although  they  know  that,  as  a 
general  proposition,  is  impracticable  at  present,  and  they  would  like 
to  see  it  done  by  adopting  a  slid  ing-scale  which  at  some  distant  period 
should  reach  zero,  and  be  an  end  to  the  duty  on  iron.  A  good  deal  has 
been  said  of  pauper  labor  on  the  other  side  of  the  ocean;  that  it  is  not 
applied  to  the  mechanical  pursuits;  it  is  applied  to  the  agricultural 
pursuits,  where  the  labor  is  in  excess  of  the  amount  of  available  land  to 
cultivate;  while  in  this  country  the  supply  of  labor  for  that  purpose  is 
not  equal  to  the  demand ;  but  tor  skilled  labor  the  relative  rates  paid  in 
England  and  France  is  not  very  largely  below  that  paid  in  this  countuy, 
taking  everything  into  consideration.  In  this  country,  in  many  instances, 
our  laborers  are  paid  too  much.  In  the  stock  and  mining  districts  many 
of  them  get  ten  dollars  a  day,  and  coal  enters  largely  into  the  cost 
of  building  ships.  So  in  our  foundries,  puddlers,  when  they  will  work 
a  whole  week,  get  about  sixty  dollars ;  but  the  prices  have  so  demoral 
ized  labor  that  they  can  scarcely  ever  be  induced  to  work  a  whole  week. 
The  last  advance  upon  the  tariff  rates  on  iron  did  not  go  into  the  hands 
of  the  manufacturers,  but,  to  a  great  extent,  into  the  hands  of  the 
laborers,  who  were  already  paid  too  much. 

Mr.  MORRELL  asked,  where  in  this  country  puddlers  were  paid  the  sixty 
dollars  per  week. 

Mr.  GIBBONS  replied,  in  Wilmington. 

Mr.  MORRELL  stated  that  in  Pennsylvania  puddlers  were  not  earning 
more  than  four  dollars  per  day. 

Mr.  LYNCH  inquired  whether,  if  ship-builders  were  allowed  drawback 
upon  the  iron  used  by  them,  and  also  a  subsidy  to  the  same  amount 
upon  American  iron  used,  the  effect  would  not  be  that  American  iron 
would  generally  be  used. 

Mr.  GIBBONS  replied  that  it  would  be  used  for  the  reason  that  our  ship 
builders  preferred  to  obtain  their  iron  at  home,  both  because  of  its  supe 
riority  and  because  the  work  can  be  done  promptly.  It  would  be  con 
sidered  a  great  nuisance  if  they  were  compelled  to  wait,  before  furnish 
ing  their  patrons,  to  send  them  abroad  for  the  plates  to  be  made.  As  a 
general  rule,  the  party  who  wants  a  ship  wants  it  now,  and  would  not  be 
willing  to  wait  for  the  two  months  that  would  be  required  to  send  abroad 
to  get  the  material.  They  could  turn  out  a  thousand-ton  iron  ship  in 
about  nine  months,  or,  commencing  in  the  spring,  so  as  to  have  the  benefit 
of  the  summer  months,  probably  in  less  time  than  that. 

Mr.  MORRELL  inquired  the  number  of  builders  of  iron  ships  in  Wil 
mington. 

Mr.  GIBBONS  replied  that  there  was  one  other  firm.  His  firm  had  for 
merly  built  large  ships,  and  within  the  last  two  years,  finding  it  more 
profitable,  had  confined  themselves  to  river  steamers. 

The  CHAIR^IAN  inquired  the  cost  of  building  a  thousand-ton  sailing 
ship. 

Mr.  GIBBONS  said  it  would  cost  about  ninety  thousand  dollars  in  cur 
rency,  built  according  to  our  American  specifications.  The  cost  would 
be  more  than  that  if  built  on  the  Lloyd  specifications,  they  crowding- 
much  more  iron  into  a  vessel  than  we  do.  The  cost  of  building  under 
their  specifications  would  probably  be  fifteen  thousand  dollars  more — a 
vessel  that  under  our  specifications  would  be  just  as  good  for  every 
practical  purpose — but  the  Lloyds  would  not  insure  at  the  same  rate. 

The  CHAIRMAN  inquired  whether,  if  our  ship-builders  were  enabled  to 
build  American  ships  as  cheaply  as  foreign  builders,  there  would  be  a 
foreign  demand  for  these  vessels. 

Mr.  GIBBONS  replied  that  it  would  not  come  immediately,  because  the- 


164  NAVIGATION    INTERESTS. 

channel  of  business  in  this  respect  is  nearly  all  foreign,  in  the  direction 
of  Scotland,  and  it  would  take  two  or  three  years,  and  possibly  more,  to 
change  it.  Currents  of  trade,  like  currents  of  water,  when  they  are  or 
have  once  set  in  a  given  direction  are  difficult  to  change.  We  could 
control  in  a  great  degree  the  South  American  trade  much  sooner  than 
we  could  that  of  the  Mediterranean  or  the  China  trade. 

The  CHAIRMAN  asked  what  description  of  vessels  the  Spanish  gunboats 
were,  of  which  we  have  heard  so  much  recently  in  New  York. 

Mr.  GIBBONS  replied  that  they  were  constructed  very  much  like  our 
tug-boats,  only  larger,  and  built  to  cross  the  ocean.  He  said  that  Mr. 
Ericsson,  who  was  intimate  with  the  authorities  at  Madrid,  obtained 
the  order  and  gave  it  to  his  next  friend,  Mr.  Delamater.  It  was  through 
Mr.  Ericsson  that  the  order  came  to  the  United  States. 

The  CHAIRMAN  asked  the  witness  if  his  firm  did  anything  toward 
building  vessels  for  the  government  during  the  war. 

Mr.  GIBBONS  answered  that  they  did. 

The  CHAIRMAN  asked  whether  a  class  of  iron  vessels  suitable  for  the 
merchant  marine  could  be  constructed  so  as  to  be  converted  into  ves 
sels  useful  to  the  government  in  time  of  war. 

Mr.  GIBBONS  said  they  would  require  a  great  change,  for  the  reason 
that  the  requirements  of  the  two  branches  of  service  are  so  different. 
A  merchant  vessel  would  have  to  be  turned  inside  out  before  she  could 
be  converted  into  a  man-of-war.  For  privateersmen  they  would  be  just 
the  thing. 

Mr.  WASHBURN  asked  whether,  in  case  of  a  war  with  England,  these 
would  not  be  just  such  vessels  as  we  would  need. 

Mr.  GIBBONS  said  they  would,  because  they  are  fast.  Heavy  ships,  as 
a  rule,  are  slow.  The  ships  built  in  England  during  the  war  for  block 
ade-runners,  and  captured  by  us,  which  have  been  sold  into  the  merchant 
service,  have  one  and  all  greatly  disgusted  their  purchasers.  They  burn 
a  great  deal  of  coal  and  carry  but  little  freight.  They  were  constructed 
to  run  fast,  but  only  the  high  freights  they  carried  made  them  profitable, 
and  when  freights  came  down  they  would  not  do  at  all. 

Mr.  WASHBURN  inquired  whether,  if  we  build  vessels  as  cheaply  as 
they  can  on  the  Clyde,  there  would  be  any  difference  afterward  in  the 
cost  of  keeping  them  in  repairs. 

Mr.  GIBBONS  said  there  would  not,  because  the  ship  would  be  repaired 
wherever  it  was  most  convenient  and  it  could  be  done  the  most  cheaply; 
that  even  now  vessels  in  this  country  destined  for  the  East  Indies  often 
get  freight  from  the  United  States  to  some  European  port,  where  they 
are  repaired  at  a  very  much  less  expense  than  in  this  country,  and  the 
officers  then  get  freight  from  that  port  to  the  East  Indies  and  come  home. 
Our  vessels  managed  mostly  to  get  their  repairs  done  out  of  the  United 
States,  so  as  to  economize,  and  that  is  the  reason  why  we  have  but  little 
to  do  in  the  way  of  repairing.  If  our  ship-builders  could  have  a  sub 
sidy  from  the  government  they  could  build  ships,  but  it  would  be  a  dan- 
ferous  precedent,  because  every  other  interest  would  want  the  same 
ind  of  protection. 

The  CHAIRMAN  inquired  how  many  hands  were  employed  in  the  ship 
yards  in  Wilmington. 

Mr.  GIBBONS  said  his  firm  employed  about  two  hundred  and  fifty. 
The  other  firm  built  railroad  cars  as  well  as  ships,  and  employed  from 
four  hundred  to  seven  hundred  hands.  The  other  firm  used  to  build 
boats  for  the  American  trade,  but  they  are  now  building  larger  vessels. 
They  were  the  builders  of  the  steamship  Champion,  running  between 
New  York  and  Charleston ;  of  the  two  iron  ships  running  to  Savannah; 


NAVIGATION   INTERESTS.  165 

of  the  American  line  of  steamers  running  from  £Tew  Orleans  to  Galves- 
ton,  Texas.  They  built  two  very  splendid  vessels  for  the  Panama  com 
pany,  one  of  them  on  the  larger  specifications,  taking  them  at  very  near 
the  quotations  in  Scotland.  This  was  a  vessel  of  two  hundred  and  sixty 
feet  iu  length,  about  thirty-three  feet  beam,  and  measuring  two  hundred 
tons.  She  was  finished  about  a  year  and  a  half  ago. 

The  CHAIRMAN  inquired  at  what  other  ship-yards  in  the  country  iron 
steamships  were  built. 

Mr.  GIBBONS  said  there  was  one  at  Chester,  and  they  were  built  at  the 
Atlantic  Works,  Boston.  During  the  war  there  were  establishments  in 
Kew  York  that  built  iron  vessels,  but  they  have  since  abandoned  the 
enterprise.  The  rates  are  greatly  higher  than  at  Wilmington.  At  Wil 
mington  mechanics  are  employed  to  work  upon  the  hulls  of  vessels,  and 
a  few  of  them  are  paid  fifteen  dollars  a  week,  but  the  average  of  them 
not  more  than  nine  and  a  half  or  ten  dollars.  The  same  class  of  work 
men  were  paid  about  ten  dollars  a  week  before  the  war.  A  large  grade 
of  mechanics  are  employed  to  work  upon  iron  vessels  for  the  reason 
that  a  few  skilled  workmen  can  get  along  very  well  with  a  good  many 
other  of  the  lower  grade.  There  is  more  difference  in  the  cost  of  build 
ing  marine  engines  between  this  country  and  Scotland  than  there  is  in 
the  cost  of  building  ships.  They  had  not  gone  into  competition  with 
them  in  Wilmington  in  building  engines.  The  only  instance,  Mr.  .Gib 
bons  said,  in  which  his  firm  had  bid  in  competition  was  for  the  steel 
works  in  Pennsylvania,  and  then  they  were  beaten  fifty  per  cent.  It 
might  be,  however,  that  their  bids  were  too  high  and  the  bids  in  Scot 
land  too  low. 


Letter  from  Samuel  Harlan,  of  the  firm  of  Harlan  $-  HoUingsirorth,  iron  ship-builders. 

WILMINGTON,  DEL.,  December  1, 18C9. 
Hon.  D.  J.  MORRELL,  of  Congressional  Committee,  <$-c. 

DEAR  SIR:  Wo  are  very  much  obliged  for  your  invitation  to  be  present  at  the  meet 
ing  of  your  committee,  in  Philadelphia,  but  regret  that  absence  from  home  will  prevent 
our  attendance. 

If  agreeable  to  your  committee,  wo  would  be  glad  to  present  our  views  in  writing  in 
subjoined  paper.  We  trust  this  will  bo  acceptable  to  you,  as  the  subject  is  one  in 
which  we  are  most  vitally  interested,  and  feel  that  the  only  hope  for  relief  lies  in  the 
action  of  Congress. 

Very  respectfully,  your  obedient  servant, 

SAM'L  HABLAN,  JR.,  President. 

We  would  present  our  views  under  the  following  heads,  viz : 

1.  As  to  the  present  condition  of  the  iron  ship-building  interest. 

2.  The  causes  which  have  led  to  its  depression. 

3.  Our  views  as  to  the  remedy  or  relief  desired. 

On  the  first  point  we  would  state  that  at  no  time  since  1857  has  the  iron  ship-building 
interest  been  so  depressed  as  it  has  within  the  last  twelve  to  eighteen  months.  During 
the  time  named  wo  have  scarcely  been  without  contracts  for  iron  boats  and  steamers 
until  within  the  past  twelve  months,  when  the  business  has  fallen  off  greatly,  in  fact, 
almost  coming  to  a  stand-still  a  good  part  of  the  timo  ;  yet,  during  this  time,  we  have 
had  more  inquiries  for  iron  ships  from  parties  wishing  to  build  than  ever  before,  but 
owing  to  the  cost  of  building  being  beyond  what  they  could  ailbrd  to  pay,  and  greater 
than  the  same  ships  would  cost  in  England,  the  negotiations  have  ended  with  mutual 
regrets,  and  the  parties  resolving  to  wait  for  a  more  favorable  condition  of  aii'uirs. 
What  work  we  have  taken  to  keep  our  men  employed,  has  been  at  rates  not  remunera 
tive,  and  in  some  instances,  at  positive  loss. 

Second.  The  causes  which  have  led  to  its  depression,  &c. : 

The  principal  one  is  the  great  advance  which  has  taken  place  since  I860  in  the  price 
of  labor  and  materials,  ranging  from  forty  to  seventy-live  per  cent.  In  many  instances 
where  parties  were  convinced  of  the  superiority  of  iron  ships,  as  compared  with  wood, 
they  were  compelled  to  build  of  wood  because  the  cost  of  the  iron  ship  was  so  much 


166  NAVIGATION    INTERESTS. 

greater.  This  difference  in  cost  is  duo,  in  a  groat  measure,  to  the  act  that  iron,  more 
than  wood,  is  the  production  of  skilled  labor,  and  is  affected  more  by  the  various  causes 
pro.hiciug  the  advance  referred  to,  as  well  as  suffering  more  from  taxation. 

Third.  As  to  the  relief  desired,  &c. : 

We  cannot  hope  for  a  reduction  in  the  price  of  labor,  as  we  find  it  is  more  difficult 
for  our  workmen  to  support  themselves  and  their  families  on  the  present  rate  of  wages, 
with  the  greatly  enhanced  cost  of  everything  consumed  by  them,  than  it  was  when 
their  wages  ruled  the  lowest,  and,  until  the  cost  of  living  is  greatly  reduced,  we  cannot 
hope  that  the  wages  of  the  mechanic  and  laboring  man  will  rule  much  below  what  it 
is  at  present;  in  fact,  it  cannot  be,  without  being  oppressive  upon  them.  It  remains, 
therefore,  to  reduce  the  cost  of  the  materials  entering  into  the  construction  and  equip 
ment  of  iron  ships,  as  the  only  remedy  left.  Can  this  be  done  to  an  extent  equal  to  the 
reduction  in  cost  desired?  We  think  not,  without  throwing  off  all  the  protection  now 
given  to  the  manufacturers  of  the  various  materials  referred  to.  While  this  might  re 
lieve  the  ship-building  interest  it  would  be  ruinous  to  other  interests,  and  would  meet 
with  great  opposition. 

We  cannot  recommend  a  more  simple  and  effectual  remedy  than  the  one  already  con 
curred  in  by  a  majority  of  ship-builders  and  ship-owners  who  have  been  before  your 
board,  viz:  to  remit  the  duties  on  all  imported  articles  entering  into  the  construction 
and  equipment  of  both  wood  and  iron,  steam  and  sailing  ships,  or  a  drawback  be 
allowed  on  all  articles  of  domestic  manufacture  equivalent  to  the  duties  named  above 
on  the  imported  article. 

This  latter  clause  is  especially  desirable,  that  ship-builders  may  not  be  obliged  to  use 
the  foreign  article  exclusively,  and  thus  break  down  the  American  manufacturers. 

The  English  and  Scotch  iron  ship-builders  have  the  advantage  over  the  American 
ship-builders  only  in  their  enlarged  experience  from  the  greater  number  of  large  sea 
going  steamships  which  they  have  built ;  but  in  the  quality  of  iron,  and  energy  and 
skill  of  our  workmen,  wo  feel  that  we  have  decidedly  the  advantage,  while  our  facili 
ties  in  tools  and  machinery  adapted  to  the  purpose  are  quite  equal  to  t  heirs.  The  for 
eign  builders  have  no  advantages  over  us  except  in  the  cheapness  of  their  iron  and 
other  materials,  and  the  greatly  reduced  rates  of  \vages  paid  their  workmen,  but  not 
in  the  superiority  of  their  workmen,  nor  quality  of  their  iron,  nor  their  ability  to  build 
better  ships. 

What  was  done  by  American  ship-builders  at  the  commencement,  and  during  the  war, 
in  building  up  our  American  marine,  is  a  sure  guarantee  of  what  they  can  do  in  build 
ing  up  a  mercantile  marine,  if  they  can  be  relieved  from  the  causes  producing  the 
present  great  depression. 

Timely  relief  will  not  only  allow  the  ship-owners  to 'procure  vessels  as  cheaply  as 
they  can  be  built  in  foreign  countries,  but  the  stimulus  thus  given  to  the  ship-building 
interest  will  produce  ships  equal  to  any  in  the  world  in  our  judgment. 

The  repeal  of  the  navigation  laws  would  enable  the  ship-owner  to  procure  cheap 
ships,  the  refuse  of  every  foreign  country,  and  even  good  ships  at  a  low  figure,  as  the 
ship-building  interest  in  England  and  Scotland  is  in  a  depressed  state  since  the  opening 
of  the  Suez  canal  has  become  an  established  fact.  Yet  it  would  effectually  close  up 
our  ship-yards  except  to  the  building  of  small  vessels  which  could  not  safely  cross  the 
Atlantic,  and  give  to  England  the  building  of  our  mercantile  marine  as  she  now  has 
our  carrying  trade. 

The  statement  has  been  freely  circulated  in  the  papers  that  we  could  build  iron  ships 
as  cheaply  at  our  works,  with  the  payments  made  in  gold,  as  they  could  be  built  on  the 
Clyde;  but  such  is  not  the  case  with  the  difference  in  cost  of  labor  and  materials  so 
greatly  against  us. 

The  advantages  we  have  from  long  experience  in  building  iron  steamers,  favorable 
location,  experienced  workmen,  every  facility  in  the  way  of  machinery,  &c.,  Avill  not 
enable  us  to  compete  with  foreign  builders,  at  the  present  cost  of  labor  and  materials, 
but  let  Congress  give  relief  in  the  shape  asked  for  above,  and  the  ship-owner  wiL  not 
have  cause  to  complain  that  he  cannot  have  ships  built  equal  to  those  of  any  nation, 
aud  at  as  reasonable  prices. 

WASHINGTON,  D.  C.,  December  15, 18G9. 

Committee  met.    Present,  all  the  members. 

T.  F.  Eowland,  ship-builder,  of  New  York,  appeared,  and  stated  that  he 
was  present, with  others,  representing  the  ship-yard  working-men — carpen 
ters,  sail-makers,  spar-makers,  iron-workers,  and  other  representatives  of 
the  labor  required  to  produce  a  finished  ship ;  that  they  came  to  Washing 
ton  to  see  if  something  could  not  be  done  to  relieve  their  interests;  that 
they  had  reduced  their  views  to  writing,  and  the  statement  would  now 
be  made  by  Mr.  Westervelt,  the  chairman  of  the  committee. 


NAVIGATION    INTERESTS.  167 

Mr.  D.  D.  Westervelt,  ship-builder,  of  New  YOIK,  thereupon  read 
aud  presented  to  the  committee  the  following  written  statement: 

NEW -YORK,  December  14,  1869. 
To  the  Hon.  JOHN  LYNCH, 

Cliairman  of  the  Special  Congressional  Committee  on  Navigation  Interests. 

SIR:  The  undersigned,  a  committee  appointed  by  the  "  New  York  Association  for  the 
restoration  of  American  shipping  interests,"  respectfully  beg  leave  to  call  your  atten 
tion  to  the  following  facts,  with  the  view  of  setting  forth  the  past  and  present  condi 
tion  of  American  commerce,  and  for  the  purpose  of  impressing  upon  Congress,  through 
the  action  of  your  committee,  the  absolute  necessity  of  some  action  being  immediately 
taken  to  prevent  the  total  destruction  of  American  international  commerce  ;  and  alsc 
to  set,  forth  the  principle  that  the  true  policy  of  our  government  is  to  foster  and 
encourage  American  ship-builders,  as  we  believe  that  a  nation's  prosperity  is  reflected 
in  the  prosperity  of  its  commercial  marine. 

As  evidence  of  the  condition  of  our  commerce  during  the  last  thirty-two  years,  we 
respectfully  call  your  attention  to  the  accompanying  exhibit  A,  which  is  a  true  copy  of 
the  record  at  the  New  York  custom-house.  It  will  be  observed  that  during  the  ycai 
1830  there  entered  the  port  of  New  York  407,096  tons  of  shipping,  the  handiwork  oi 
American  craftsmen,  and  only  one-third  of  that  amount  of  tonnage  entered  under  the 
head  of  foreign.  The  American  builders  sustained  their  prestige  for  twenty  years 
thereafter,  and  specimens  of  their  workmanship  were  seen  and  respected  in  every  port, 
and  carried  our  emblem  on  every  sea. 

In  1858  the  English  commenced  the  substitution  of  iron  for  wood  in  the  art  of  ship 
building,  and  since,  by  a  chain  of  circumstances  fortunate  to  them  but  disastrous  to  us. 
the  record  shows  for  1868  that  nearly  two  tons  of  foreign  tonnage  to  one  of  American 
was  recorded  at  the  port  of  New  York.  Many  of  these  vessels,  notwithstanding  they 
appear  under  a  foreign  flag,  are  productions  of  our  American  ship-yards,  having  changed 
their  record  for  protection  during  our  late  internal  struggle. 

Previous  to  the  year  1868,  the  port  of  New  York  sustained  not  less  than  twenty 
prominent  ship-yards,  employing  with  the  collateral  trades,  such  as  joiners,  spar-mak 
ers,  sail-niakers,  &c.,  not  less  than  twenty  thousand  skilled  mechanics,  in  addition  to 
one  thousand  young  men  as  apprentices  learning  the  various  trades.  To-day  these 
yards  have  either  ceased  to  exist,  or  are  lying  dormant,  not  one  thousand  skilled 
mechanics  finding  employment,  and  so  small  are  the  inducements  for  young  men  to 
learn  the  profession  that  apprentices  are  no  longer  to  be  found. 

It  is  in  the  interest  of  the  country  at  large,  who  in  time  of  war  must  have  ships  to 
sustain  its  dignity,  and  mechanics  to  build  them,  that  wo  appeal  to  your  honorable 
committee  to  recommend  to  Congress  some  potent  measure  for  the  relief  of  our  pro 
fession. 

We  would  respectfully  and  most  earnestly  recommend  that  some  action  bo  immedi 
ately  taken  by  our  government  to  foster  and  encourage  the  art  of  ship-building ;  and, 
in  consideration  of  the  fact  that  all  governments  gain  power  and  respect  by  the  pro 
ficiency  of  their  seamen  and  mechanics,  we  believe  it  would  be  eminently  fit  and  proper 
that  Congress  should  legislate  to  allow  to  the  American  ship-builder  an  equivalent  on 
all  American  materials  used  by  him  in  the  construction  of  the  finished  ship,  equal  to 
the  amount  of  duty  which  the  government  would  receive  should  such  raw  material  bo 
of  foreign  production. 

Regarding  the  proposition  to  modify  or  abrogate  the  United  States  registry  laws, 
and  allow  foreign-built  ships  to  register  on  equal  footing  with  American  productions, 
we  most  respectfully  desire  to  protest.  Nearly  every  native  American,  and,  we  be 
lieve,  the  great  majority  of  our  adopted  citizens,  are  possessed  of  a  certain  amount  of 
pride,  and  rejoice  in  the  growth  and  success  of  our  naval  and  mercantile  marine;  and, 
though  at  the  present  time  the  people  at  large  may  appear  to  be  indifferent  and  luke 
warm  upon  the  subject,  it  is  our  united  opinion  that  could  a  full  expression  be  ob 
tained,  it  would  be  found  to  bo  their  unanimous  desire  that  the  principles  inaugurated 
by  the  founders  of  our  institutions  in  regard  to  our  registry  laws  should  bo  undis 
turbed,  and  that  all  vessels  partaking  of  its  benefits  should  be  constructed  on  Ameri 
can  territory. 

D.  D.  WESTERVELT. 
T.  F.  ROWLAND, 
L.  H.  BOOLE, 
WILLIAM  FOULKE, 

JOSHUA  Yorx<;s. 

THOMAS  STARK, 
JOHN  E.  HOFFMIRE, 
WILLIAM  ROWLAND, 
DAVID  J.  TAFF, 
ROBERTA.  RUSSELL, 
Committee  of  the  New  York  Association  for  tlic  restoration  of  American  shipping  interests. 


168  NAVIGATION    INTERESTS. 

A. — Tonnage  entered  at  New  York  from  foreign  ports  during  the  year  18G8. 


No.  of 

vessels. 

Tonnage. 

Seamen. 

American  vessels 

2  084 

1  033  396 

31  551 

Forei(rn   vessels 

2  734 

1  867  591 

68  201 

Total  entered  in  1868            .  .           ... 

4  818 

2  900  987 

99  752 

Total  entered  in  1862 

5  400 

2  55°  4*1 

81  817 

Total  entered  in  1852  

3  847 

1,709,988 

58  867 

Number  of  arrivals,  amount  of  American  and  foreign  tonnage,  and  the 
total  tonnage  entered  at  the  port  of  New  York,  during  the  years  below 
specified. 


Year. 

No.  of 
arrivals. 

American 
tonnage. 

Foreign 
tonnage. 

Total  ton 
nage. 

1836 

2  285 

407  996 

149  634 

556  730 

1846  

2,  292 

496  761 

185  404 

682  165 

1856 

3  861 

1  684  596 

386  263 

2  070  859 

1866 

4  827 

990  116 

1  776  318 

2  766  434 

1868  

4,818 

1,  033,  396 

1,  867,  591 

2  900,987 

DOMESTIC  TONNAGE. 

The  returns  for  the  past  nine  mouths  show  that  the  arrivals  and  clearances  in  the 
domestic  trade  amounted  to  upwards  of  fifty  million  tons,  or  about  three  times  that  of 
the  foreign  trade.  It  lias  been  only  moderately  prosperous  during  the  present  years, 
barely  paying  insurance  and  depreciation. 

Statement  of  the  foreign  trade  of  the  city  of  New  York,  including  the 
value  of  imports  and  exports,  and  showing  the  proportion  under  the 
United  States  and  foreign  flags,  for  the  periods  named. 


Year. 

In  American 
vessels. 

Iii  foreign 

vessels. 

1857       

$239,  565,  610 

$104,  354,  631 

1867 

123,687  012 

367,  508,  647 

1868....  

113,  313,  303 

371,  849,  274 

From  the  foregoing  statement,  it  will  be  seen  that  the  rapid  increase  of  foreign  tan 
nage  is  most  startling,  as  wo  discover  that  in  the  year  1868  nearly  two-thirds  of  the 
whole  tonnage  entered  in  the  port  of  New  York  was  foreign,  whereas  during  the  year 
1856  it  was  scarce  twenty  per  cent,  of  the  total. 

If  we  look  at  the  cargo  values  respectively  carried  in  American  and  foreign  vessels, 
we  find  that  during  the  year  1888  seventy-live  per  cent,  ^were  carried  in  foreign  ves 
sels;  and  it  may  be  safely  asserted  that  more  than  eighty  per  cent,  of  all  tho  value 
of  goods  imported  and  exported  from  the  port  of  New  York  during  the  present  year 
has  been  carried  in  foreign  vessels. 

In  the  year  1857,  out  of  a  value  of  $53-3.000,000,  carried  to  and  from  all  our  domestic 
ports,  only  $131,000.000  went  under  a  foreign  Hag.  In  1867,  out  of  §864,000,000  at  all 
the  ports,  $577,600,000  were  carried  in  foreign  vessels. 


NAVIGATION    INTERESTS.  169 

Mr.  WM.  FOULKE,  of  the  same  committee,  made  the  following  state 
ment  : 

As  will  be  seen  by  this  document,  we  feel  as  if  our  business  had  gone 
from  us,  and  that  we  were  left  desolate.  In  our  ship-yards  we  have 
nothing  to  do;  and  we  shall  have  nothing  to  do  unless  the  government 
does  something  to  protect  us.  I  would  like  to  see  a  return  of  the  same 
prosperity  in  our  ship-yards  which  we  enjoyed  years  ago.  I  think  we 
are  capable  of  regaining  our  former  prestige  if  we  have  a  chance.  We 
do  not  think  we  have  lost  our  ability  or  our  skill;  and  we  will  show  that 
we  have  not,  if  an  opportunity  is  given  us  to  compete  with  foreign 
builders. 

By  Mr.  WASIIBURNE  : 

Q.  Do  you  think  that  if  you  can  obtain  the  materials  that  enter  into 
the  construction  of  a  ship  as  cheaply  as  tbey  do  abroad, -you  can  compete 
successfully  with  foreign  builders,  notwithstanding  the  high  cost  of 
labor  ? 

Mr.  D.  D.  WESTERVELT,  (ship-builder.)  That  is  the  opinion  of  the  gen 
tlemen  composing  this  committee.  Labor  is  higher  here,  but  we  think 
American  labor  is  sufficiently  superior  to  foreign  labor  to  compensate  for 
the  additional  price  it  costs.  We  believe  our  workmen  are  superior  to 
those  of  any  country  in  the  world.  In  former  years  we  came  into  com 
petition  in  this  industry  with  Great  Britain,  and  we  almost  swept  her 
ships  from  the  China  Seas,  by  our  superiority  of  model;  our  clipper  ships 
were  the  best  in  the  world,  and  to  this  day  Great  Britain  has  never 
known  how  to  build  the  model  of  a  ship  except  as  she  has  been  taught 
it  by  us.  With  all  her  superior  and  powerful  engines,  her  ships  were 
almost  always  slow,  because  the  models  were  bad.  At  present  we  recog 
nize  the  fact  that  the  days  of  Avooden  ship-building  are  over.  We  may 
in  this  country,  as  they  have  in  Great  Britain,  enter  upon  the  construc 
tion  of  composite  vessels,  i.  e.,  iron  vessels,  the  bottoms  of  which  are 
covered  with  plank,  and  again  covered  with  copper.  But  we  know  that 
the  great  bulk  of  ships  being  built  for  the  ocean  are  iron  ships;  and  we 
believe  that  if  the  opportunity  is  afforded  us,  we  can  begin  almost  imme 
diately  to  compete  with  Great  Britain  in  building  iron  ships.  All  that 
we  ask  is,  that  we  may  have  the  materials  as  low  as  they  are  furnished 
to  her  ship-builders. 

Q.  What  I  understand  you  want,  then,  is  this :  That  the  government 
shall  give  you  a  bounty  upon  American  materials  used,  equal  to  a  draw 
back  of  duties  on  foreign  materials,  if  they  were  used  $ 

Mr.  WESTERVELT.  Yes,  sir ;  that  is  about  it.  We  prefer  to  use  our 
own  iron,  and  that*  the  government  will  pay  to  us,  on  the  American  iron 
we  use,  an  amount  equal  to  the  duty  we  should  receive  if  a  drawback 
were  allowed  on  an  equal  quantity  of  foreign  iron. 

Q.  Is  there  not  this  difference  between  giving  a  bounty  and  giving  a 
drawback :  That  the  drawback  applies  to  money  which  has  never  gone 
into  the  treasury,  never  been  in  the  possession  of  the  government,  and, 
therefore,  is  not  an  actual  loss  of  revenue,  while  the  bounties  you  ask 
require  money  to  be  paid  directly  from  the  treasury  ? 

Mr.  WESTERVELT.  That  is  true ;  but  our  idea  is  to  promote  the  inter 
ests  of  our  own  people,  by  building  American  ships  of  American  mate 
rials. 

WM.  EOWLAND,  (ship-builder,)  of  the  same  committee,  made  the  fol 
lowing  statement : 

I  would  like  to  take  exception  to  the  expression  used  by  Mr.  Wester- 
vclt,  that  we  were  asking  a  bounty.  It  is  a  well  understood  principle 


J70  NAVIGATION   INTERESTS. 

that  when  money  paid  out  brings  back  an  equivalent  consideration,  the 
money  so  paid  is  not  a  bounty.  Now,  we  propose  to  give  a  considera 
tion  in  return  for  the  money  we  ask  the  government  to  pay  us.  A  great 
many  people  think  that  the  best  thing  to  be  done  to  revive  the  ship 
building  interest  is  to  take  the  duty  off  from  iron.  But  that  would  not 
give  us  present  relief  at  all  in  this  country;  it  might  ten  years  hence, 
but  that  would  not  answer  our  purpose.  Our  relief  must  come  within 
the  next  twelve  months,  or  the  ship-building  interests  are  gone.  The 
consideration  which  we  shall  give  the  government  in  return  for  the 
money  we  ask  is,  the  education  of  her  seamen  and  mechanics  for  the 
ships  required  in  time  of  war.  Certainly  if  the  government  ever  gets 
into  trouble  with  a  foreign  nation,  she  will  need  us.  To-day  the  govern 
ment  has  not  a  ship  of  war  that  would  not  be  a  laughing-stock  if  sent 
abroad  as  a  first-class  naval  vessel.  During  the  last  war,  I  had  the 
honor  of  building  the  first  monitor  and  the  first  iron-clad  for  the  gov 
ernment;  and  I  should  very  much  dislike  to  think  that  those  vessels 
were  to  be  taken  to  England  as  an  exhibition  of  what  American  skill 
can  produce.  And  we  cannot  build  vessels  unless  we  have  workmen  ; 
and  I  think  government  can  well  afford  to  educate  the  workmen  of  this 
country,  as  well  as  States  can  afford  to  build  public  school-houses  and 
support  schools  for  the  education  of  the  children.  If  the  school-house 
is  locked  up,  and  the  schoolmaster  abroad,  education  will  deteriorate. 
And  so  will  ship-building,  if  shipyards  are  closed  and  the  workmen  dis 
missed. 

Mr.  MORRELL  inquired  whether  the  government  would  not  receive  a 
greater  benefit  than  the  money  now  asked  to  be  paid,  by  the  additional 
employment  this  protection  would  give  to  our  people. 

Mr.  ROWLAND.  The  compensation  which  we  furnish  is  direct.  It  is 
just  as  directly  for  the  benefit  of  the  government  as  to  cast  cannon  at 
your  arsenals  in  time  of  peace,  and  wait  for  war  to  break  out  before 
using  them.  These  ships,  and  men  who  know  how  to  build  the  ships, 
are  absolutely  necessary  for  the  safety  of  the  government.  They  are  of 
as  much  consequence  to  the  iiavy  of  the  country  in  time  of  war  as  the 
men  you  employ  in  the  army.  I  do  not  like  the  word  "bounty"  to  be 
used  in  this  connection. 

Mr.  HOLMAN.  Would  not  the  simple  allowance  of  a  drawback  upon 
the  foreign  material  used  furnish  sufficient  encouragement  to  revive 
the  ship-building  interests  of  the  country? 

Mr.  KOWLAND.  I  cannot  see  how  a  drawback  upon  iron  would  be  of 
any  value  to  us  at  present.  The  iron  that  goes  into  the  construction  of 
an  American  ship  must  be  rolled  in  this  country.  The  raw  material 
might  come  from  England,  but  it  must  be  rolled  within  five  hundred 
miles  of  where  the  ship  is  to  be  built,  or  else  the  material  will  never  go 
into  the  ship.  Every  vessel  is  built  on  its  own  model ;  and  plates  could 
not  be  rolled  in  England  for  one  vessel  which  could  be  made  available 
for  other  vessels  here.  Notwithstanding  our  great  facilities  of  com 
munication  with  England,  I  do  not  believe  it  would  be  possible  to 
obtain  the  plates  for  a  thousand-ton  iron  ship  from  England  within 
three  months  after  they  were  ordered. 

Mr.  LYNCH  inquired  whether  the  business  of  ship-building  was  not  so 
perfected  that  a  vessel  could  be  built  here  of  the  same  class  of  those  to  be 
built  in  England,  and  the  iron  received  for  them  within  a  reasonably 
short  time. 

Mr.  EOWLAND.  No,  sir ;  I  think  not.  Plates  are  rolled  to  fit,  without 
being  cut  at  all,  though  I  always  allow  for  an  inch.  The  iron  scrap,  or 
waste,  01  a  three-thousand-ton  ship  amounts  to  about  two  per  cent. 


NAVIGATION    INTERESTS.  171 

of  the  whole  weight.  This  consists  of  the  trimmings  of  the  plates  and 
what  is  punched  out  of  the  rivet  holes.  This  should  be  reduced  to  one 
per  cent.,  and  undoubtedly  will  be,  when  we  have  had  sufficient  experi 
ence.  The  frames  are  also  all  rolled,  and  cut  to  a  particular  length. 

Mr.  WASIIBURNE  inquired  what  would  be  the  cost  of  the  raw  mate 
rial  upon  which  a  duty  is  paid  for  building  a  three-thousand-ton  *hip. 

Mr.  ROWLAND.  I  am  not  prepared  to  state  to  you  what  the  cost  would 
be.  There  would  be  about  twelve  hundred  tons  of  materials  of  all  de 
scriptions  in  the  ship,  mostly  of  iron  ;  very  little  copper  is  used.  Even 
in  the  construction  of  engines  much  less  copper  is  used  than  formerly. 
We  find  that  iron  is  better.  The  loss  of  material  caused  by  galvanic 
currents  formed  by  the  combination  of  iron  and  copper  is  prevented 
when  only  iron  is  used. 

Mr.  HOLMAN  inquired  whether  the  duty  on  copper  affected  the  cost  of 
ship-building  very  much. 

Mr.  ROWLAND.  It  affects  the  cost  of  building  wooden  ships  materi 
ally,  and  let  me  say  that  I  think  Mr.  Westervelt  is  very  much  mistaken 
when  he  thinks  the  days  of  building  wooden  ships  are  over.  I  doubt 
very  much  whether  that  day  has  arrived. 

Mr.  WESTERVELT.  I  make  that  statement  from  data  which  I  think 
will  convince  any  one.  For  instance,  the  average  lifetime  of  a  wooden 
ship  is  not  more  than  twelve  years,  and  there  is  always  an  uncertainty 
as  to  the  time  the  vessel  will  live.  During  the  war,  gunboats  were 
built  which  are  already  unfit  for  service;  whereas  a  first-class  iron  ship 
will  last  for  twenty-one  years,  without  any  difficulty.  And  although  I 
am  a  wooden  ship-builder,  and  never  built  an  iron  ship  in  my  life,  1  am 
still  of  the  opinion  that  the  days  of  wooden  ships  are  at  an  end.  I 
never  expect  to  build  another.  I  believe  that  composite  ships  will  be 
introduced  into  this  country,  as  they  have  been  into  Great  Britain. 
During  the  war  we  built  for  the  government  the  Brooklyn,  and  some  of 
the  first  batch  of  double-enders. 

Mr.  LYNCH  inquired  what  were  the  advantages  of  composite  ships. 

Mr.  WESTERVELT.  The  trouble  with  iron  ships  is,  the  bottoms  soon 
become  foul,  covered  with  barnacles  and  sea-grass,  so  as  greatly  to  im 
pede  their  progress  through  the  water;  while  ships  the  bottoms  of  which 
are  covered  with  wood  and  coated  with  copper  will  remain  in  the  water 
a  long  time  without  becoming  foul.  These  composite  ships  will  last  as 
long  as  iron.  The  frames  are  iron ;  the  planks  being  attached  to  the 
iron  frames.  The  ventilation  is  so  complete  that  there  is  no  danger  of 
the  planks  rotting.  Wooden  ships  rot  where  the  planks  come  in  con 
tact  with  the  wooden  frames.  Inside  the  planking,  five  or  six  inches 
distant,  slats  are  fastened,  to  prevent  the  cargo  from  coming  in  contact 
with  the  planking.  The  cost  of  composite  ships,  too,  is  considerably 
less  than  that  of  iron  ships ;  and  our  ship-builders  in  this  country  would 
have  this  advantage  in  their  construction,  that  wood  is  cheaper  here. 
They  are  exceedingly  useful  in  long  voyages,  particularly  the  tea  trade. 
I  have  seen  one  of  these  vessels,  after  returning  to  Liverpool  from 
China,  with  her  bottom  so  clean  that  you  would  scarcely  suppose  she 
had  been  out  more  then  ten  or  fifteen  days. 

Mr.  LYNCH  inquired  as  to  the  cost  of  insurance  upon  this  class  of 
ships. 

Mr.  WESTERVELT.  I  cannot  answer  that  question  accurately.  I 
should  suppose  they  would  not  rate  quite  as  low  as  an  iron  vessel, 
although  they  are  really  as  safe  in  every  respect.  They  are  no  more 
liable  to  burn  up,  and  the  chance  of  the  crew  escaping  in  case  of  fire 
would  really  be  greater.  There  is  not  very  much  difference  in  the 


172  NAVIGATION    INTERESTS. 

strength  5  for  the  frame  is  iron,  and  the  thickness  of  the  planking  is  suf 
ficient  to  give  it  the  proper  amount  of  strength. 

Mr.  WASHBURNE  inquired  what  percentage  of  the  whole  cost  of  ves 
sels  it  would  be  necessary  for  the  government  to  pay  to  enable  builders 
in  this  country  to  compete  with  those  abroad? 

Mr.  WESTERVELT.  I  am  not  able  to  answer  accurately.  I  should  say, 
in  sailing  ships,  thirty-three  and  a  third  per  cent,  would  probably  be 
sufficient.  Sailing  ships  are  now  constructed  in  Great  Britain  for  about 
fourteen  pounds  sterling  per  ton,  and  steamships  for  about  twenty-three 
or  twenty-four  pounds  sterling  per  ton.  Ship-builders  in  this  country, 
I  think,  would  be  able  to  construct  better  ships,  because  the  materials 
here  are  better,  in  respect  to  both  wood  and  iron.  Iron  steamships,  in 
Great  Britain,  are  constructed  according  to  what  is  called  Lloyd's  speci 
fications,  aiid  are  required  to  conform  to  those  specifications  in  order  to 
enable  the  owners  to  effect  their  insurance.  A  certain  thickness  of  the 
plates  is  required  for  a  vessel  of  a  certain  tonnage;  and,  indeed,  the 
specifications  enter  into  so  great  a  variety  of  details  that  anybody  who 
can  read  can  build  a  ship  according  to  Lloyd's  specifications.  They  are 
based  upon  the  supposition  that  all  iron  is  of  the  same  strength; 
although  the  iron  in  this  country  is  very  much  stronger  than  theirs,  so 
that  a  considerably  less  thickness  of  plate  would  give  the  same  strength 
as  required  by  their  specifications,  when  made  of  English  iron.  In  fact, 
a  less  thickness  of  iron  of  our  superior  quality  makes  a  better  ship. 
Many  parts  of  a  ship  are  subject  to  a  tension  strain  rather  than  a  press 
ing  strain.  If  only  the  latter  were  to  be  guarded  against,  cast  iron 
would  be  very  much  better  than  wrought  iron  ;  for  you  can  subject  it  to 
a  great  pressing  strain  without  injury.  Nor  is  it  necessary  that  the  iron 
should  be  of  such  thickness  as  not  to  yield,  to  a  certain  extent,  under 
pressure.  In  fact,  a  ship  which  will  yield  a  little,  under  a  heavy  sea, 
may  be  stronger  and  safer  than  one  perfectly  unyielding,  as  all  of  us 
know  is  true  in  the  case  of  a  bridge. 

Mr.  LYNCH  inquired  whether  these  composite  ships  usually  have  iron 
masts  and  rigging! 

Mr.  WESTERVELT.  Most  of  them  have  iron  masts,  and  some  have 
Iron  yards  also.  Iron  masts  are  made  hollow,  like  a  stove-pipe,  with  a 
hole  at  the  top  extending  through  to  the  bottom. 

Mr.  IIOL3IAN  asked  whether  American  ship-builders  had  not  protec 
tion  and  encouragement  in  the  fact  that  a  very  large  percentage  of  the 
tonnage  of  the  whole  country  was  in  the  coasting  trade,  which,  by  law, 
is  exclusively  in  the  hands  of  American  builders? 

Mr.  WESTERVELT.  Yes,  sir ;  and  that  is  the  only  encouragement  and 
safety  we  have.  But  for  that  the  entire  ship-building  interests  in  the 
United  States  would  inevitably  be  lost ;  but  even  that  is  changing  very 
rapidly.  Steam,  is  monopolizing  the  coastwise  trade,  just  as  it  has  the 
foreign  trade;  and  if  we  allow  foreigners  to  compete  with  us  in  the 
coastwise  trade,  it  will  not  be  five  years  before  we  shall  not  have  an 
American  ship  upon  our  waters.  We  are  already  losing  rapidly  in  this 
respect,  under  our  present  laws;  and  if  foreign-built  ocean  ships  are 
permitted  to  have  an  American  register,  it  will  not  be  long  before,  hav 
ing  American  crews,  and  being  in  fact  then  American  ships,  we  shall 
find  them  transferred  to  our  coastwise  trade.  I  do  not  think  there  is 
any  safety  whatever  to  the  commercial  interests  of  this  country  in 
allowing  foreigners  to  compete  with  us  in  building  ships  which  are  to 
have  an  American  register,  either  for  the  foreign  or  the  coastwise 
trade.  We  must  keep  them  off.  The  most  of  our  ship-builders  are 
already  quitting  the  business,  and  it  will  not  be  long  before  none  will 


NAVIGATION    INTERESTS.  173 

be  left,  unless  something  is  done  to  encourage  ship-building  in  this 
country.  We  are  doing  nothing  in  our  own  yard;  we  have  employed 
hardly  five  men  a  week  during  the  last  six  months. 

Mr.  LYNCH  inquired  whether  the  tendency  now  was  not  to  crowd  our 
vessels  out  of  the  foreign  trade  altogether,  and  force  them  into  the 
coastwise  trade,  in  which  there  was  no  competition  f 

Mr.  WESTERVELT.  Yes,  sir;  very  greatly  so.  The  only  ocean  trade 
left  us,  which  is  at  all  profitable,  is  the  California  business ;  and  that 
only  pays  a  few  favorite  ships,  which  have  the  reputation  of  great 
speed  ;  and  the  competition  has  been  so  great  among  them  for  the  past 
year  that  freights  have  been  taken  out  at  ruinously  low  rates,  at  which, 
of  course,  the  vessels  made  ruinous  voyages.  I  do  not  think  a  single 
dollar  has  been  made  by  any  American  ship-owner,  in  any  voyage  to 
Liverpool,  within  the  last  five  years.  Still,  we  have  ships  that  are  con 
tinually  running  in  the  hope  of  occasionally  making  a  paying  voyage, 
and  in  the  hope  that  something  will  occur  to  encourage  them  in  this 
trade.  Our  ships  are  being  worn  out,  and  very  few  are  being  built. 
Some  few  are  .built  to  the  eastward,  but  there  is  very  little  sale  for 
them.  They  are  often  brought  to  New  York  and  sold  greatly  below 
cost. 

Mr.  WASHBURN  inquired  whether  the  ship-builders  of  this  country 
could  construct  steamers  able  to  compete  with  the  Cuuard  and  Inman 
lines,  and  which  at  the  same  time  would  be  useful  as  war  vessels  in 
time  of  war? 

Mr.  WESTERVELT.  I  think  not.  I  think  that  great  speed  is  rather 
antagonistic  to  the  elements  required  for  an  efficient  fighting  vessel. 

Mr.  WASHBURN.  Would  not  a  great  many  ships,  in  case  of  a  war — 
with  Great  Britain,  for  instance — be  employed  to  prey  upon  the  enemy's 
commerce,  and  would  not  great  speed  be  required  for  this  °? 

Mr.  WESTERVELT.  Yes,  sir;  and  also  for  transportation,  as  was  the 
case  in  the  Crimean  war.  We  built  ships  years  ago  capable  of  greater 
speed  than  any  other  nation  could  build ;  and  we  can  do  it  now,  if  we 
have  the  proper  encouragement.  There  are  plans  and  drawings  now  in 
existence  of  a  ship  that  will  cross  the  Atlantic  within  seven  days.  I 
think,  without  doubt.  We  are  ahead  of  all  other  nations  with  respect 
to  models,  and  have  always  been.  Wherever  we  have  come  into  com 
petition  with  the  English  in  this  respect  we  have  always  beaten. 

Mr.  WTASHBURN  asked  whether  war  vessels  could  be  built  as  well  in 
private  ship  yards  as  at  the  government  yards  I 

Mr.  WESTERVELT.  I  think  the  private  yards  can  build  better  ships. 
If  the  United  States  government  desired  to  get  war  vessels  that  should 
exceed  in  excellence  those  of  any  other  country,  it  should  call  upon  the 
ship-builders  of  the  country  for  models,  plans,  and  drawings.  When 
we  made  our  contract  for  the  ship  of  war  Brooklyn,  almost  all  the  naval 
men  said  she  would  be  a  failure.  But  Admiral  Farragut  told  me,  in  the 
presence  of  a  number  of  gentlemen,  that  he  considered  her  the  most 
efficient  vessel  in  the  United  States  Navy.  There  are  very  few  vessels 
now  in  the  navy  which  can  properly  be  called  good  vessels.  I  do  not 
know  of  a  single  one  built  during  the  war  that  it  would  be  desirable  to 
duplicate  for  our  navy.  There  are  still  good  vessels  in  the  navyr  how 
ever,  built  before  the  war. 

Mr.  LYNCH  inquired  whether  the  plans  and  drawings  to  which  the 
witness  referred  as  being  those  of  fast  steamers  were  for  screw  propel 
lers  or  side-wheel  boats. 

Mr.  WESTERVELT.  Side-wheelers.  The  great  hindrance  in  crossing  the 
Atlantic  has  been  the  great  draught  of  water.  Here  our  English  friends 


174  NAVIGATION    INTERESTS. 

have  made  their  great  mistake — in  increasing  their  draught  in  propor 
tion  to  the  size  of  their  vessels.  A  ship,  to  sail  rapidly,  must  draw  as 
little  water 'as  possible.  We  now  recognize  the  fact  that  the  Atlantic 
Ocean  is  simply  a  ferry,  and  that  ships  of  one  class  are  to  be  built 
simply  to  take  passengers  and  their  baggage,  while  ships  of  an  entirely 
different  class  are  to  take  the  freight. 

Mr.  L.  H.  BOOLE,  of  the  same  committee,  made  the  following  statement : 

There  are  one  or  two  things  I  would  like  to  say.  In  the  first  place,  a  great 
deal  has  been  said,  and  written,  and  sent  to  this  committee  in  the  shape  of 
letters  and  reports,  by  men  who  ought  to  have  known  and  done  better,' 
letters  of  condemnation  of  our  ship-builders,  holding  them  up  to  ridicule. 
Now,  it  is  true  we  cannot  compete  with  the  Clyde  builders.  Our  mate 
rials  are  high,  our  labor  very  high.  But  these  very  men  to  *viiom  I  have 
referred — the  ship-owners,  who  say  in  their  report  that  there  has 
been  no  improvement  in  ship-building  in  this  country  for  the  last  ten 
years — are  thus  condemning  the  very  men  who  in  years  past  have  fur 
nished  them  the  finest  models  of  ships  that  ever  floated  on  the  ocean. 
One  of  the  difficulties  we  have  had  to  contend  with  is  that  the  most  of 
the  ships  we  build  are  built  by  contract.  The  parties  for  whom  we  build 
furnish  a  superintendent,  who  is  constantly  present  to  see  that  the  ship 
is  built  to  suit  their  notions.  This  necessarily  involves  an  increased 
cost  of  building.  If  the  builders  were  allowed  to  exercise  their  own 
judgment,  and  their  own  ingenuity,  they  could  build  as  good  or  better 
ships  for  fifteen  or  twenty  per  cent,  less  money. 

The  ships  built  upon  the  Clyde  are  not  to  be  compared  with  our  ships 
in  either  joinery  or  finish,  in  any  respect.  And  yet  these  ship-owners, 
who  require  us  to  finish  our  ships  in  the  best  style  of  joinery,  and  to 
expend  a  great  amount  of  labor  upon  the  finish,  tire  ready  to  go  abroad 
and  buy  those  cheap  Clyde-built  ships.  I  call  your  attention  to  a  letter, 
which  is  already  in  your  possession,  stating  that  the  working  men  of 
the  Clyde  have  their  minds  so  thoroughly  made  up  upon  running  this 
business  out  of  this  country  that  they  are  willing  to  submit  to  any  re 
duction  of  wages,  and  to  any  amount  of  sacrifice  necessary  to  prevent 
our  competing  with  them.  Not  more  than  four  or  five  shillings  a  day  is 
now  paid  there  for  skilled  workmen ;  and  yet  these  men  are  working- 
day  after  day,  and  are  willing  to  submit  to  greater  sacrifices  in  order  to 
compete  with  us  in  this  country.  It  has  often  been  remarked  that,  when 
you  go  on  board  these  English" steamers,  you  do  not  find  any  such  finish, 
nor  any  such  joinery,  as  you  will  find  on  our  ships. 

I  would  like  to  say  just  one  word  in  regard  to  the  coasting  business. 
Our  American  builders  not  only  want  to  compete  for  the  coastwise  trade, 
but  they  want  to  compete  with  the  world  in  the  building  of  ships.  The 
people  abroad  could  not  build  wooden  ships  equal  to  our  models,  and 
were,  therefore,  driven,  from  necessity,  to  build  ships  of  iron.  They 
have  not  the  wood  •  they  have  the  iron,  and  they  can  now  turn  out  very 
good  iron  ships  from  our  models.  The  commerce  upon  our  lakes  is  just 
about  the  same  as  the  coasting  trade,  and  the  extent  of  that  commerce 
may  not  be  known.  In  the  years  of  1856,  1857,  and  1858,  it  is  stated 
that  the  lake  commerce  amounted  to  about  six  hundred  millions  of  dol 
lars  per  annum.  In  the  year  1856,  the  commerce  which  passed  the  St. 
Clair  flats,  exclusive  of  the  coasting  trade  of  the  lake,  amounted  to  up 
wards  of  four  hundred  millions  of  dollars.  It  was  then  something  of  a 
novelty  for  a  Canadian  vessel  to  come  into  one  of  our  ports.  Now,  you 
see,  a  majority  of  the  vessels  in  our  lake  ports  are  from  Canada  $  and 
many  of  our  ship-builders,  formerly  in  Boston,  have  gone  to  Montreal 
and  Quebec.  It  has  been  said  very  often  of  late  by  the  British,  that 


'  NAVIGATION    INTERESTS.  175 

our  weak  spot  was  in  the  dwindling  of  our  shipping.  Only  a  little  while 
ago  a  committee  was  endeavoring  to  make  arrangements  for  carrying 
the  freight  from  the  Paciiic  railroad  over  the  Grand  Trunk  railroad  to 
Portland;  and,  in  their  way,  they  seemed  to  be  working  with  success  to 
draw  our  trade  away  from  us. 

I  do  not  think  the  day  for  wooden  ships  is  past,  by  any  means.  Our 
forests  in  Florida,  Texas,  Wisconsin,  Michigan,  and  Maine,  contain  too 
large  an  amount  of  excellent  ship-timber  for  that.  The  wooden  clipper 
ships  of  this  country  can  still  go  abroad  with  good  profit.  The  idea  was 
some  years  ago  conceived  by  western  men  of  building  ships  in  the  woods, 
loading  them  with  grain,  and  sending  them  abroad  to  be  sold.  We 
found  that  the  plan  was  feasible;  and  the  only  thing  that  prevented  its 
being  carried  out  was,  that  the  Wellaud  Canal  was  not  sufficient  to 
enable  sea-going  vessels  to  go  through.  Then  parties  from  Boston  and 
Chicago  undertook  to  see  if  something  could  not  be  done  for  the  enlarge 
ment  of  that  canal.  But  they  met  with  no  encouragement  from  the 
Canadian  authorities.  Now,  when  the  success  of  the  enterprise  would 
be  for  their  benefit,  they  propose  to  enlarge  the  Welland  Canal  so  as  to 
enable  them  to  build  wooden  ships,  and  send  them  abroad,  as  ice  formerly 
proposed  to  do. 

Mr.  HOLMAN  inquired  whether  the  ship-building  interests  of  Canada 
were  more  prosperous  than  on  this  side  of  the  line. 

Mr.  BOOLE.  Yes,  sir.  Within  the  last  three  years  that  business  has 
been  very  prosperous  in  Canada.  I  was  not  long  since  in  a  Canadian 
ship  yard,  in  which  six  or  seven  vessels  for  the  upper  lakes  were  being 
built  j  and  the  price  paid  to  the  workmen  was  from  sixty  to  seventy 
cents  a  day,  in  silver.  This  industry  has  been  rapidly  progressing, 
within  the  last  two  or  three  years,  at  Quebec,  Montreal,  and  Three  Ittvers; 
and  many  of  the  men  now  employed  there  were  formerly  employed  in 
Boston  and  other  points  in  the  United  States.  A  few  years  ago  you 
could  tell  a  "  Kanuck"  vessel  as  far  as  you  could  see  it ;  now,  they  have 
so  improved  in  their  construction  that  you  cannot  tell  one  until  you  get 
on  board — though  our  vessels  are  still  superior  to  theirs,  wiien  you  ex 
amine  them  closely. 

Mr.  HOLMAN  inquired  whether  an  allowance  equal  to  a  drawback  on 
the  materials  used,  in  spite  of  our  higher  rates  of  wages,  would  enable 
American  ship-builders  to  compete  with  foreigners. 

Mr.  BOOLE.  I  think  it  would,  if  the  law  was  so  positive  that  ship 
builders  could  be  assured  it  would  not  soon  be  repealed.  My  judgment, 
after  a  very  close  calculation,  is,  that  there  is  about  thirty  per  cent,  dif 
ference  in  the  cost  of  building  here  and  abroad.  I  think  that  if  the 
government  would  pay  to  the  ship-builders  one-third  the  costs,  in  the 
shape  of  bounty,  or  whatever  you  choose  to  call  it,  it  would  enable  thein 
to  compete  with  foreign  ship-builders. 

Another  difficulty  is,  the  higher  rate  of  interest  upon  capital  in  this 
country  than  abroad.  But  if  the  business  were  rendered  permanent, 
1  think  our  ship-builders  would  be  ready  to  enter  vigorously  into  the 
competition.  Formerly,  ship  carpenters  commanded  a  higher  rate  of 
wages  than  those  employed  in  building  houses,  &c.  We  then  paid  them 
five  dollars  a  day,  while  they  now  command  but  three,  or  three  and  a  half. 
House  carpenters  have  the  advantage,  that  houses  cannot  be  built  abroad 
and  brought  here,  as  railroads  cannot  be  built  abroad  and  brought  here ; 
while  ships  can  be  built  abroad  and  brought  here.  Formerly,  appren 
tices  were  glad  to  work  for  nothing,  or  at  very  low  wages,  in  order  to 
learn  the  art  of  ship-building,  knowing  that  as  a  journeyman  he  could 
make  good  wages  at  that  business ;  now  there  are  no  apprentices  em- 


176  NAVIGATION   INTERESTS. 

ployed  in  our  yards.  I  have  four  boys,  and  I  would  rather  they  would 
go  into  almost  anything  else  than  into  a  ship-yard — although  I  would 
be  proud  to  bring  them  up  in  that  business,  if  it  could  be  established 
upon  a  basis  such  that  ship-builders  could  live. 

An  English  gentleman,  who  came  to  this  country  some  years  ago, 
could  uot  undorstand  how  it  was  that  we  could  send  our  lake  and  river 
steamers  through  the  water  at  the  rate  of  twenty  miles  an  hour.  He 
traveled  up  the  Hudson,  and  from  Buffalo  to  Cleveland,  at  that  rate  ; 
but  such  boats  are  not  now  in  existence.  The  tonnage  of  American 
vessels  on  the  lakes  is  decreasing  rapidly,  while  that  of  Canadian  vessels 
is  increasing  as  rapidly. 

Iron  vessels,  so  far,  have  not  succeeded  on  the  lakes  as  grain  carriers. 

Mr.  HOLMAN  inquired  whether  wooden  vessels  could  not  be  built  in 
this  country  as  cheaply  as  in  Canada. 

Mr.  BOOLE.  No,  sir;  at  the  breaking  out  of  the  war  we  were  getting 
the  finest  quality  of  timber  at  twelve  or  fifteen  dollars  a  thousand,  in 
the  West.  So  large  a  quantity  was  then  called  for  to  be  taken  down  the 
river  to  repair  forts,  and  for  other  purposes  connected  with  the  war, 
that  the  price  went  up  to  twenty-eight  or  thirty  dollars  a  thousand;  and 
uow  it  is  about  twenty  or  twenty-two  dollars  a  thousand.  We  of  course 
can  get  all  the  lumber  we  want  in  this  country;  but  in  Canada  labor  is 
so  lo\v  that  they  make  it  into  ships  cheaper.  There  is  a  difference  in 
the  amount  of  labor  a  Canadian  and  an  American  will  do ;  still,  two  Cana 
dians  will  do  more  work  than  one  American,  although  they  together 
receive  about  the  same  pay  as  the  American '.  In  Canada  no  duty  is 
paid  on  any  article  entering  into  the  construction  of  a  vessel,  if  the 
builder  imports  it  himself.  Very  little  copper  is  used  in  Canadian-built 
vessels,  and  in  other  respects  they  are  built  different  from  ours ;  they 
are  built  almost  altogether  of  straight  timber.  Again,  there  are  under 
writers,  who  have  gotten  up  specifications  for  ship-building,  as  the 
Lloyds  have  in  England;  and  the  builders  are  required  to  conform  to 
these  specifications  in  order  to  effect  insurance. 

I  think  it  has  been  estimated  in  this  country  that  the  duties  paid  on 
a  thousand-ton  iron  ship  amount  to  about  eleven  or  twelve  thousand 
dollars ;  that  is,  about  eleven  or  twelve  dollars  a  ton.  Vessels  can  now 
be  built  in  Canada  at  a  cost  about  forty  per  cent,  less  than  in  this  coun 
try.  We  used  to  estimate  an  A  No.  1  vessel  at  about  a  dollar  a  bushel ; 
that  is,  a  vessel  carrying  sixteen  thousand  bushels  of  grain  would  cost 
about  sixteen  thousand  dollars ;  but  now,  I  think  the  cost  in  this  coun 
try  is  about  one  dollar  and  seventy-five  cents  per  bushel ;  while  Canada 
builders  are  able  to  construct  their  vessels  lower  than  ever  before. 

Mr.  W^ELLS  inquired  what  proportion  of  the  war  vessels  were  built  at 
private  yards  during  the  war. 

Mr.  WESTERVELT.  I  cannot  answer  that  question  with  accuracy. 
The  double-enders  were  built  at  private  yards ;  and  the  first  batch  of 
gunboats,  and  several  monitors ;  also  a  number  of  cutters ;  but  what 
proportion  of  the  whole  I  am  unable  to  say. 

WASHINGTON,  December  1C,  18G9. 

Committee  met.  Present:  The  chairman,  and  Messrs.  Calkin  and 
Holman. 

Mr.  JOHN  EOACH  proprietor  of  the  Morgan  Iron  Works,  New  York, 
appeared,  and  made  a  statement  to  the  committee.  He  said  that  he  had 
been  connected  with  the  iron  business  for  thirty-five  years ;  and  had 
also  been  engaged  in  building  all  parts  of  ships  of  every  kind,  from  the 
smallest  to  the  largest. 


NAVIGATION    INTERESTS.  177 

Immediately  after  the  late  civil  war,  he  gave  the  matter  a  great  deal 
of  consideration. 

He  had  made  up  his  mind,  from  the  prospects  which  he  saw  ahead, 
and  from  the  cost  of  building  ships  in  America,  that  something  must  bo 
done;  and  had  therefore  sent  some  of  the  most  competent  persons  con 
nected  with  ship-building  in  New  York,  and  some  competent  engineers, 
to  Europe,  procuring  for  them  letters  of  introduction  from  the  Secretary 
of  State,  which  gained  for  them  admission  into  all  the  dock-yards  of 
England  and  France,  and  other  countries  where  ship-building  was  carried 
on  to  any  extent.  He  sent  them  at  his  own  expense,  in  order  that  they 
might  furnish  him  with  information  in  regard  to  ship-building,  and  as 
to  the  superiority  of  iron  ships  over  wooden  ones.  By  this  means  he 
had  probably  acquired  more  information  in  detail  upon  this  subject  than 
was  possessed  by  any  one  man  in  England  or  this  country. 

The  instructions  which  he  had  given  those  persons  were  to  obtain,  not 
newspaper  information,  but  practical  information. 

He  had  made  up  his  mind  that,  sooner  or  later,  Congress  would  dis 
cover,  and  would  act  upon  the  discovery,  that  no  nation  could  be  truly 
and  permanently  great  which  had  to  depend  upon  another  nation  for 
its  ships,  particularly  when  itself  possessed  abundant  resources  for  build 
ing  ships. 

But  aware  that  no  man  would  have  any  right  to  come  to  Congress 
and  ask  for  protective  legislation  unless  he  had  first  adopted  every  means 
in  his  power  to  protect  himself,  he  had  determined  to  spend  a  quarter 
of  a  million  of  dollars  in  perfecting  machinery. 

The  consequence  was  that  his  alone,  out  of  ten  large  marine-engine 
shops  which  had  been  in  operation  in  the  city  of  New  York  before  the 
war,  had  been  able  to  survive  the  present  state  of  affairs.  He  had  thus 
far  been  able  to  keep  his  shops  open  without  sinking  capital. 

By  a  personal  investigation  of  the  matter,  going  around  to  different 
establishments,  he  had  ascertained  that  the  number  of  men  engaged  in 
the  construction  of  ships,  and  in  the  various  trades  connected  therewith, 
before  the  war,  was  about  twenty  thousand,  besides  about  two  thousand 
young  men  then  engaged  in  learning  the  business. 

To-day,  out  of  the  ten  marine-engine  shops  that  were  in  existence 
in  New  York  at  the  commencement  of  the  war,  his  was  the  only  one 
remaining  in  existence.  Some  of  them  had  been  turned  into  small  mills, 
some  of  them  into  stables.  The  ship-yards  had  all  been  closed  except 
one,  which  was  engaged  in  building  a  coasting  vessel.  He  had  no  doubt 
that  a  similar  state  of  things  existed  in  other  parts  of  the  country. 

The  question  was  asked,  whether  all  this  had  been  brought  about 
because  the  carrying  trade  was  diminished  ? 

He  thought  not ;  on  the  contrary,  he  believed  that  the  carrying  trade 
had  increased.  He  had  found  out,  by  personal  examination  within  the 
last  year,  that  there  were  one  hundred  and  nineteen  iron  steamships 
plying  between  the  ports  of  America  and  of  Great  Britain.  Of  that  num 
ber,  one  hundred  and  ten  were  running  to  the  port  of  New  York,  with 
an  aggregate  tonnage  of  311,600  tons.  But  of  all  these,  with  the  excep 
tion  of  the  Pacific  Mail  Steamship  Company's  steamers,  of  which  two  a 
month  ran  from  New  York,  there  was  not  a  single  steamship  in  the  great 
commercial  city  of  America,  engaged  in  the  foreign  trade,  carrying  the 
American  flag. 

The  lust  one  that  had  crossed  the  ocean  was  the  steamship  Fulton, 
and  he  had  token  her,  last  week,  for  a  debt,  for  the  purpose  of  breaking 
her  up. 

And  this  was  the  present  condition  of  American  commerce. 
12,N  I 


178  NAVIGATION    INTERESTS. 

He  had  no  doubt  tliat  a  great  pressure  would  be  brought  to  bear  upon 
Congress  in  regard  to  the  introduction  of  foreign  ships.  But  he  was 
prepared  to  meet  that  question,  and  to  show  that  such  a  policy  was  not 
consistent  with  the  welfare  of  the  United  States. 

In  the  one  hundred  and  nineteen  ships  to  which  he  had  alluded,  there 
was  a  capital  of  eighty  millions  of  dollars  invested.  The  greater  portion 
of  the  earnings  of  these  ships  came  from  the  carrying  of  American  mails, 
American  passengers,  and  American  commerce. 

Upon  a  close  calculation,  the  repairs  of  all  these  ships,  embracing 
their  huUs,  furniture  and  machinery,  would  amount  to  about  nine  millions 
of  dollars  per  annum.  Of  that  sum  there  was  not  one  hundred  thousand 
dollars  per  annum  spent  in  this  country,  although  the  greater  portion 
of  the  earnings  of  these  ships  was  collected  from  citizens  of  the  United 
States.  They  bring  with  them  their  own  boats,  their  own  putty,  their 
own  red  lead,  and  everything  connected  with  the  repairing  of  a  ship, 
and  have  those  repairs  done  by  their  own  crews ;  and  it  is  only  in  case 
that  general  repairs  are  needed  that  they  call  upon  the  New  York  engine 
shops  for  a  little  aid.  Here  is  an  item  of  eight  millions  of  dollars,  for 
repairs  alone,  turned  away  from  this  country  and  sent  abroad. 

America  had  lost  her  commerce ;  and  what  had  she  obtained  in  ex 
change  for  it  ? 

Simply  the  right  for*  a  few  men  to  charge  nine  dollars  per  ton,  in  gold, 
on  the  importation  of  pig  iron  ! 

Pig  iron  was  the  basis  of  all  other  metals  connected  with  the  making 
and  repairing  of  ships.  There  had  been  a  revolution  in  ship-building, 
and  iron  was  the  material  from  which  they  were  now  built.  The  high 
cost  of  iron,  produced  by  the  tariff  upon  it,  was  one  of  the  principal  dif 
ficulties  that  our  commerce  had  to  contend  with. 

It  might  be  said  that  Americans  had  protection  in  the  coasting  trade ; 
but  he  could  show  the  committee  that  that  amounted  to  nothing. 

There  was  probably  no  man  in  America  who  had  more  at  stake  in  this 
matter  than  himself.  He  had  a  million  of  dollars  in  property  dependent 
upon  the  building  of  ships,  and,  so  far  as  he  was  concerned,  he  did  not 
care  how  soon  the  coasting  trade  was  thrown  open  to  foreigners. 

The  men  engaged  in  the  coasting  trade  can  now  scarcely  live  and  pay 
their  bills.  On  account  of  the  high  duty  on  the  materials  used,  it  now 
costs  fifty  per  cent,  more  to  repair  ships  in  America  than  in  other 
countries,  and  on  this  account,  and  from  the  fact  that  this  country  is 
now  so  intersected  and  cut  up  by  railroads,  the  coasting  trade  by  sea  is, 
to  a  large  extent,  done  away  with.  Even  the  New  Orleans  trade  is 
disappearing,  because  vessels  are  sent  down  there  from  England  to  carry 
the  cotton  to  Europe.  The  Mobile  trade  is  also  passing  away;  so  is  the 
Baltimore  trade.  Foreign  steamers  frequent  these  ports,  and  thus  this 
coasting  trade  of  which  so  much  has  been  said,  after  all,  does  not 
amount  to  anything. 

There  had  been  three  propositions  before  the  committee  in  regard  to 
the  mode  of  relief  of  American  commerce.  The  first  of  these,  as  he  under 
stood  it,  was  to  permit  Americans  to  go  abroad  and  buy  ships.  The  men 
who  had  suggested  this  idea  were  mostly  men  who  had  come  to  this 
country  since  American  commerce  had  been  transferred  to  England; 
who  had  opened  shops  in  New  York  and  were  doing  a  foreign  trade. 
He  thought  there  were  enough  ships  now  to  carry  the  trade.  The  trouble 
was,  they  belong  in  the  wrong  direction — they  are  owned  by  men  over 
the  water.  If  this  privilege  were  granted,  he  regarded  it  as  being  nothing 
more  nor  less  than  permitting  the  one  hundred  and  nineteen  steamers 
now  plying  in  the  port  of  New  York  to  do  so  under  the  American  flag. 


NAVIGATION    INTERESTS.  179 

They  would  be  owned  abroad,  in  order  to  avoid  American  taxation,  but 
their  business  would  be  transacted  on  this  side. 

A  gentleman  from  the  New  York  Chamber  of  Commerce  called  upon 
him  a  few  weeks  since  and  inquired  what  objection  there  could  be  to 
having  ships  built  on  the  other  side  of  the  water.  In  reply,  he  asked 
the  gentleman  the  simple  question  what  he  wanted  to  accomplish  by 
buying  ships  abroad?  The  gentleman  answered,  "Nothing  more  than 
to  bring  commerce  back  to  where  it  was  before  the  war."  He,  Mr.  Eoach, 
flien  asked  the  gentleman,  "Do  you  know  where  it  was  before  the  war  .* 
With  what  portion  of  commerce  would  you  be  satisfied?"  The  gentle 
man  replied,  "  Nothing  less  than  we  then  had,  which  was  nearly  one- third 
the  entire  commerce  o?  the  world."  If  this  were  to  be  undertaken,  and 
if  it  were  attempted  to  be  brought  about  by  buying  ships  to  replace  those 
which  carried  the  American  commerce  before  the  war,  it  would  require 
an  expenditure  of  one  hundred  and  fifty  millions  of  dollars;  and  this 
money  would  be  paid  to  England,  the  only  great  ship-building  country 
in  the  world;  and  the  effect  would  be  to  increase  the  pric.e  of  ships  at 
least  twenty  per  cent.  Besides,  by  so  doing,  all  the  American  ship-yards 
and  founderies  would  be  closed,  and  the  materials  of  American  mines 
would  remain  unused.  Again,  everybody  will  recollect  the  difficulties 
experienced  during  the  war  from  the  want  of  ships ;  and  American  ship 
yards  and  engine-shops  were  in  a  much  better  condition  at  the  breaking 
out  of  the  war  than  they  are  now.  Yet  it  was  found  that  when  the 
government  called  upon  private  establishments,  and  gave  them  contracts 
for  building  ships  and  engines,  the  work  that  should  have  been  done  in 
one  year  was  not  done  in  four  years.  The  ship-yards  and  founderies  were 
not  prepared  to  do  the  work.  Had  the  American  founderies  and  ship 
yards  and  machine-shops  been  in  the  efficient  condition  in  which  such 
establishments  then  were  and  now  are  in  Great  Britain,  lie  actually 
believed  that  the  rebellion  could  have  been  put  down  at  half  the  expense, 
if  not  in  half  the  time,  it  really  was. 

Congress  was  much  excited  regarding  the  depredations  committed  by 
the  Alabama.  The  Alabama  was  only  one  ship  let  loose  upon  American 
commerce ;  but  here  were  to-day,  coming  into  the  harbor  of  New  York, 
a  hundred  and  twenty  ships,  each  one  of  them  more  formidable  and  of 
greater  speed  than  the  Alabama,  built  by  English  builders,  owned  by 
English  merchants,  and  to  some  extent  under  the  supervision  of  Eng 
lish  naval  officers ;  so  that,  while  now  engaged  in  the  peaceful  pursuits 
of  commerce,  in  forty-eight  hours  they  could  be  converted  into  most 
effective  ships  of  war. 

If  any  one  should  inquire  what  American  ship-builders  were  to  give 
in  return  for  the  favors  they  asked,  he  would  reply  that  one  of  these 
days  the  Navy  Department  would  be  asking  Congress  for  an  appropria 
tion  of  fifty  or  sixty  millions  of  dollars  for  the  purpose  of  making  a 
more  efficient  navy ;  and  a  very  large  proportion  of  that  amount  might 
be  saved  by  encouraging  American  merchants  in  time  of  peace  to  build 
say  a  hundred  steamers.  The  hundred  and  twenty  English  steamers 
noV  carrying  our  commerce  were  double  the  tonnage  of  the  whole  Ameri 
can  navy.  This  fact  he  stated  from  authentic  information ;  it  was  no 
loose  and  careless  statement.  And  they  were  ready  to  be  set  at  work  at 
any  time  and  for  any  purpose  for  which  Great  Britain  might  want  to  use 
them. 

Again,  if  America  were  to  close  up  her  ship-yards  and  marine  engine 
shops,  and  depend  upon  Great  Britain  to  build  her  ships,  she  would  be 
in  the  most  helpless  condition  conceivable.  The  day  is  not  far  distant 
when  it  will  concern  the  men  who  have  capital  invested  in  the  prairies  of 


180  NAVIGATION   INTERESTS. 

the  West,  and  the  cotton  plantations  of  the  South,  as  much  as  the  mer 
chants  of  New  York,  to  take  an  interest  in  and  to  protect  the  commerce 
of  America.  The  people  of  the  United  States  should  be  in  a  position 
to  take  that  advantage  of  English  commerce,  in  case  of  a  war  between 
England  and  France,  that  England  took  of  American  commerce  when 
the  United  States  were  at  war.  The  island  of  Great  Britain  is  of  no 
greater  extent  than  the  State  of  New  York  or  Pennsylvania  $  and  if  her 
commerce  were  taken  from  her,  what  would  be  left  of  her  ?  She  would 
become  one  of  the  most  helpless  nations  on  the  face  of  the  earth.  He, 
Mr.  Eoach,  could  not  understand  why  nine  dollars  a  ton  duty  should  be 
paid  on  pig-iron,  or  why  there  should  be  any  duty  at  all  upon  it.  Ameri 
can  iron  and  American  engine-shops  are  as  much  American  manufactures 
and  were  as  essential  to  the  prosperity  of  the  nation  as  American  rolling 
mills  or  other  property ;  and  yet  American  ship-yards  and  American 
engine-shops  have  no  protection  at  all.  The  iron  ore  can  be  taken  from 
the  mines,  and  with  ordinary,  uneducated  labor  can  be  converted  into 
pig-iron  in  forty-eight  hours ;  but  no  nation  would  ever  know  the  value 
of  her  ship-builders  and  mechanics  of  that  class  until  she  needed  skilled 
workmen.  The  material  is  easily  obtained;  but  it  is  of  very  little  use 
without  skilled  workmen  to  work  it.  With  the  ship-yards  and  marine 
engine  shops  closed,  and  with  these  men,  who  had  spent  their  lifetime 
in  learning  and  becoming  skillful  in  these  trades,  gone  into  other  pur 
suits,  it  would  be  impossible  to  educate  workmen  in  their  stead.  There 
would  be  as  much  possibility  of  educating  children  in  the  sciences  with 
the  school-houses  locked  up  and  the  school-teachers  gone  away. 

The  CHAIRMAN.  What  remedies  do  you  propose? 

Mr.  EOACH.  In  view  of  these  one  hundred  and  twenty  steamers  now 
engaged  in  carrying  our  commerce,  I  have  looked  at  the  matter  in  this 
light :  What  would  be  considered  a  healthy  growth  of  American  com 
merce  ?  I  think  that  the  annual  production  of  twenty  such  ships  would 
be  a  healthy  growth.  They  would  cost  from  twelve  to  fifteen  millions 
of  dollars.  In  five  years  that  would  cause  an  outlay  of,  say  one  hundred 
million  of  dollars,  which  would  seem  to  me  to  be  a  very  simple  and  easy 
burden  for  this  country  to  carry.  My  idea  is  that  Congress  should  settle 
upon  a  percentage  to  be  given  the  ship-builders,  by  way  of  bounty ;  not 
letting  it  go  into  the  hands  of  speculators  or  mail  contractors,  but  pro 
viding  that,  on  every  vessel  built  for  the  foreign  trade,  a  certain  amount 
should  be  allowed  to  the  party  building  the  ship.  I  think  that  at  present 
twenty  per  cent,  would  be  about  a  fair  allowance.  That  percentage  of 
twenty  million  dollars,  which  is  my  estimate  of  what  would  be  a  healthy 
growth  of  American  commerce,  annually,  would  be  four  million  dollars. 
Can  no  way  be  found  to  distribute  that  four  million  dollars  per  annum 
over  other  interests  that  will  not  feel  it,  and  thus  help  revive  a  most 
important  interest  that  is  utterly  crushed?  By  helping  to  build  ships, 
instead  of  sending  one  hundred  and  fifty  millions  of  dollars  abroad  to 
buy  ships,  you  develope  your  own  iron  mines,  you  give  employment  to 
your  own  workmen,  you  stimulate  your  own  manufacturing  interests. 

The  question  may  be  asked,  what  is  the  country  going  to  get  back  for 
this  outlay  ?  I  answer,  we  would  save  you  almost  that  much  in  the 
service  which  these  vessels  would  be  to' your  navy. 

The  CHAIRMAN.  How  would  you  apply  your  idea  more  in  detail  ?  In 
what  shape  should  the  money  be  given? 

Mr.  EOACH.  In  the  shape  of  a  percentage  to  every  merchant,  or  other 
person,  who  should  build  a  ship  for  the  foreign  trade ;  so  much  per  ton 
upon  the  tonnage  of  the  vessel  as  registered  in  the  custom-house. 

The  CHAIRMAN.  If  a  certain  amount,  equal  to  the  duties  paid  on  the 


NAVIGATION   INTERESTS.  181 

materials  entering  into  the  construction  of  the  vessel,  were  remitted, 
would  there  then  be  a  demand  for  vessels  to  be  built  here  f 

Mr.  KOACH.  I  think  so.  I  make  this  statement  upon  accurate  infor 
mation  as  to  the  comparative  cost  of  ship-building  here  and  abroad. 
Whenever  you  resume  specie  payments,  and  as  the  tariff  is  gradually 
reduced,  the  amount  necessary  to  be  paid  by  government  to  put  Ameri 
can  ship-builders  on  an  equal  footing  with  foreign  ones  will  gradually 
decrease,  until  the  building  of  ships  will  cost  the  government  nothing. 

I  saw  a  statement  recently  that  our  government  was  scarcely  able  to 
procure  sailors  5  and  that  reminded  me  of  what  a  gentleman  remarked 
to  me  the  other  day.  Said  he, "  Mr.  Roach,  if  I  wanted  to  destroy  New  York 
•by  a  fleet  of  ships,  I  do  not  know  but  that  I  would  have  to  get  English 
men  to  do  it;  they  know  our  channel  now  much  better  than  we  do  our 
selves.'7 

Mr.  HOLMAN.  During  the  last  twenty  years  has  not  the  tonnage 
employed  in  domestic  commerce  been  equal  to  at  least  fifty  per  cent,  of 
the  entire  tonnage  of  the  country,  and  is  not  at  this  time  the  tonnage 
engaged  in  the  domestic  trade  equal  to  seventy  per  cent,  of  the  whole? 

Mr.  ROACH.  Our  domestic  tonnage  has  increased,  but  you  will  find 
that  it  will  largely  decrease.  Previous  to  the  completion  of  the  Pacific 
railroad,  the  Pacific  Mail  Steamship  Company  sent  out  four  ships  per 
month  from  New  York,  and  the  North  American  Steamship  Company 
three  ships;  in  all  seven  ships  a  month.  Now  there  are  but  two  ships 
engaged  in  that  trade,  instead  of  seven;  and  it  would  hardly  be  fair  to 
expect  that  our  coasting  tonnage  would  keep  on  increasing  in  the  future 
as  it  has  increased  in  the  past,  because  our  railroads,  intersecting  the 
country  everywhere,  have  cut  into  that  trade  to  a  very  great  extent. 
The  New  Orleans  trade  is  not  more  than  half  what  it  formerly  was. 
There  used  to  be  three  or  four  large  lines  of  steamers  plying  between 
New  York  and  New  Orleans.  Now  there  are  five  English  lines  between 
New  Orleans  and  England,  and  four  English  lines  to  Baltimore. 

Mr.  HOLMAN.  Do  you  think  that  allowing  the  American  ship-builder 
a  drawback,  or  rebate  of  the  duties  and  taxes,  external  and  internal,  on 
the  materials  entering  into  the  construction  of  ships,  would  be  sufficient 
to  revive  ship-building? 

Mr.  ROACH.  I  think  there  is  no  possible  doubt  of  it.  I  am  speaking 
from  accurate  information,  when  I  tell  you  that  things  are  not  represent 
ed  to  you  by  the  other  side  in  their  true  light,  because  in  every  move 
that  we  make  in  Congress,  we  are  striking  at  the  seventy  or  eighty  mil 
lions  of  capital  invested  in  those  one  hundred  and  twenty  steamships 
plying  to  New  York;  and  it  is  a  death-struggle  whether  the  one  hundred 
and  fifty  millions  of  dollars  that  are  to  be  invested  in  American  steam 
ships,  shall  be  expended  in  this  country,  or  on  the  Clyde.  I  have  been 
trying  to  get  this  very  information,  which  I  have  placed  before  you,  pub 
lished  in  the  New  York  press ,  but  I  could  not  do  it.  There  is  now  on 
the  one  side,  the  interests  of  the  broken  down  ship-builders,  and  broken 
down  merchants  of  America,  applying  to  Congress  for  relief;  and  there  is 
on  the  other  side,  this  capital  of  seventy  or  eighty  millions  of  dollars  con 
centrated  in  opposition.  We  have  the  facilities  for  ship-building  in 
America.  Our  sliip  builders  and  our  engine-builders,  amid  all  their  dis 
couragements,  have  not  been  idle.  Tney  have  been  closely  watching  the 
movement  and  the  progress  of  the  trade  on  the  other  side.  And  we  can 
go  to  work  to-day  and  build  a  faster  ship  than  England  can,  and  that 
will  carry  one-third  more  cargo,  while  it  consumes  no  more  fuel. 

Mr.  HOLMAN.  I  see  that  your  mind  favors  the  idea  of  the  government 
paying  to  the  ship-builder  a  bounty  equivalent  to  the  taxes  imposed  up- 


182  NAVIGATION   INTERESTS. 

on  tlie  materials  ;  that  is,  equivalent  to  the  taxes  which  would  be  impos 
ed  upon  the  materials,  providing  they  were  imported,  Now,  if  instead  of 
paying  to  the  ship-builder  a  bounty,  which  would  be  equal  to  perhaps 
thirty  per  cent,  the  policy  were  to  be  resorted  to  of  returning  to  him  all 
the  duties  on  the  articles  entering  into  the  construction  of  the  ship, 
what  would  the  effect  be  $ 

Mr.  EOACH.  I  did  not  come  here  to  ask  a  bounty.  I  came  here  to 
tell  you  that,  while  all  other  articles  of  American  produce  are  protected 
to  a  great  extent,  there  is  no  protection  for  American  ships.  If  Con 
gress  will  take  off  all  the  duties  from  American  iron,  reducing  it  to  tho 
price  of  foreign  iron,  then  we  are  prepared  to  compete  with  foreign  ship 
builders.  The  labor  question  is  misstated.  We  are  prepared  to  meet* 
that  difficulty,  and  to  ask  no  further  legislation  on  the  subject. 

Mr.  HOLMAN.  You  think,  then,  that  a  rebate  of  the  taxes  would  be  a 
sufficient  encouragement  to  ship-building  1 

Mr.  EOACH.  Yes,  sir;  if  we  could  avail  ourselves  of  the  benefits  of  it- 
But  there  is  a  practical  difficulty  in  the  way,  right  here.  Iron  has  come 
to  supersede  wood  in  ship-building.  The  ships  of  the  future  will  be 
built  of  iron.  There  is  a  class  of  iron  manufactured,  and  imported,  and 
converted  into  general  use  all  over  the  civilized  world ;  it  is  from  the 
thickness  of  four  inches  to  the  thickness  of  a  wire ;  but  only  about  one- 
tenth  of  the  iron  we  use  in  the  building  of  a  ship,  is  this  imported  iron; 
so  that  by  the  rebate  of  duties  we  would  get  no  relief  except  to  the  ex 
tent  of  about  one-tenth  of  the  materials  used.  The  question  may  arise, 
why  not  import  the  whole  of  the  iron  used  in  the  ship  1?  Simply  because 
that  would  involve  almost  or  quite  three  times  the  capital  required  to 
carry  on  the  business,  and  when  a  man  conducts  his  business  upon  such 
a  plan  that  it  requires  three  times  the  capital  that  ought  to  be  re 
quired,  he  cannot  conduct  that  business  successfully.  For  instance,  if  a 
man  makes  a  contract  with  me  to  build  a  ship,  in  agreeing  upon  the 
terms  of  payment,  I  say  to  him,  the  first  payment  is  to  be  made  when 
the  keel  and  the  first  tier  of  plates  connected  with  it  are  laid;  and  the 
second  payment  when  the  next  tier  of  plates  is  laid;  and  so  on  dividing 
the  payment  into  ten  distinct  parts.  Now,  if  I  am  obliged  to  import 
my  materials,  I  must  make  my  drawings,  and  send  them  to  Scotland, 
and  import  all  those  tons  of  iron  at  once,  and  pay  for  them ;  which  will 
require  a  Branch  larger  capital  than  it  would  otherwise  have  been  neces 
sary  for  me  to  use.  Besides,  it  is  impossible  for  one  ship-builder  to  com 
pete  with  another,  when  the  one  is  obliged  to  bring  so  heavy  a  material 
as  iron  from  a  distance  of  three  thousand  miles,  and  across  the  ocean. 
The  freight  on  iron  is  a  good  deal  more  than  it  was  some  years  ago, 
when  it  was  transported  in  sailing-vessels;  it  is  now  transported  in 
steamers.  Some  is  yet  transported  in  sailing-vessels;  but  the  pig-iron, 
transported  in  steamers,  is  to-day  worth  in  New  York  two  dollars  per 
ton  more  than  that  transported  in  sailing-vessels.  A  great  proportion 
of  all  the  pig-iron  sold  in  New  York  is  sold  to  consumers  "  to  arrive." 
The  purchaser  can  tell  to  a  day  when  a  steamer  will  arrive  with  his 
iron  on  board,  and  make  his  arrangements  accordingly ;  but  he  cannot 
tell  within  weeks  or  even  months  the  time  when  a  sailing-vessel  will 
arrive. 

Mr.  HOLMAN.  Is  there  much  pig-iron  imported  into  this  country  ? 
•    Mr.  EOACH.  Very  little,  in  comparison  with  what  has  been  imported. 

Mr.  HOLMAN.  And  this  duty  of  nine  dollars  per  ton  in  gold,  is  an 
obstacle  right  in  the  way  of  that  importation  ? 

Mr.  EOACH.  Yes,  sir. 

Mr.  HOLMAN.  Would  not  the  policy  of  allowing  a  rebate  to  the  ship- 


NAVIGATION    INTERESTS.  183 

builders  of  the  duties  on  the  materials  entering  into  the  construction  of 
a  ship,  have  the  effect  to  bring  down  the  cost  of  iron  in  this  country1? 
In  other  words,  would  not  the  American  dealers  be  compelled  to  reduce 
the  price  of  their  iron,  in  order  to  prevent  ship-builders  from  going 
abroad  for  it  ? 

Mr.  ROACH.  I  think  it  would  have  that  effect.  I  think  the  ship-build 
ers  themselves  would  become  the  manufacturers  of  iron  for  their  own 
ships.  If  such  relief  is  given  as  will  enable  us  to  build  ships,  I  will  guar 
antee  to  put  a  rolling-mill  in  my  ship-yard,  and  then  I  will  be  prepared 
to  say  to  a  man  without  regard  to  Peimsylvanian  or  other  monopolies, 
".  I  will  build  you  a  ship  for  so  much." 

When  gold  was  at  140,  I  could  buy  foreign  pig-iron  at  a  small  price 
over  what  I  could  buy  American  iron  for.  To-day  I  can  buy  Scotch 
iron  for  seven  dollars  a  ton  less  than  I  can  buy  American  iron  ;  the  dif 
ference  being  in  the  premium  on  gold.  I  am  really  of  the  opinion  that 
this  difference  in  currency  is  used  as  a  cloak  for  the  advance  of  all  com 
modities  ;  for  I  find  that  nothing  has  Sympathized  with  gold  in  propor 
tion  to  the  reduction  of  the 


WASHINGTON,  D.  C.,  December  21,  1869. 

The  committee  met,  all  the  members  present. 

Admiral  PORTER  appeared  before  the  committee  and  made  the  follow 
ing  statement  in  reply  to  interrogatories  :  He  said  that  the  European 
governments  had  taken  away  entirely  the  American  commerce  on  the 
Atlantic,  and  that  we  had  now  no  steamships  in  the  foreign  trade,  except' 
one  or  two  running  to  Brazil.  If  the  United  States  possessed  the  steam 
ships  plying  between  New  York  and  Europe,  the  government  would  have 
a  better  navy  than  it  ever  had.  There  was  not  a  ship  in  the  American 
Navy  that  could  compare  with  the  best  ships  on  the  English  and  French 
lines  in  point  of  speed,  stability,  or  for  carrying  guns.  The  ship  that 
would  carry  merchandise  would  carry  guns.  All  those  vessels  could  be 
fitted  with  masts  in  a  very  short  time  and  rigged  completely.  They 
could  keep  the  ocean  three  years  without  bulling  a  pound  of  coal.  This 
remark  applied  to  the  European  screw-ships,  of  which  he  thought  there 
were  now  sixty-five  engaged  in  the  New  York  trade,  while  the  United 
States  had  not  one.  All  the  American  mails  were  now  carried  in  foreign 
steamships,  which  realized  a  very  heavy  profit  from  carrying  the  mails, 
particularly  the  French  steamer^s.  Each  of  those  vessels  carried  from 
thirty  to  forty  thousand  letters  a  trip,  and,  as  the  French  postage  was 
double  the  English  rate,  it  could  be  seen  what  a  heavy  profit  they  real 
ized. 

The  CHAIRMAN.  I  understand  you  to  say  that  a  class  of  vessels  can 
be  built  for  commercial  purpose  that  can  be  readily  converted  into  ves 
sels  of  war  ? 

Admiral  PORTER.  Yes,  sir  5  nearly  every  ship  that  was  used  during 
the  war  was  a  merchant  ship.  He  went  on  to  say  that  this  diversion  of 
the  trade  was  driving  from  the  American  service  all  its  naval  engineers. 
The  foreign  vessels  were  all  run  by  foreign  engineers  5  there  were  not 
many  American  engineers  on  board  of  them. 

When  the  rebellion  broke  out,  all  the  American  ships  that  were  en 
gaged  in  the  European  trade  got  such  heavy  profits  from  the  government 
that  they  were  at  once  absorbed  in  the  navy.  If  the  United  States  had 
possessed  half  the  number  of  steamships  now  engaged  in  the  European 
trade  with  New  York,  he  did  not  think  that  the  rebels  would  ever  have 
got  a  bale  of  cotton  from  a  southern  port,  and  that  the  rebels  would 
have  had  to  submit  long  before  they  did.  The  American  Navy  at 


184  NAVIGATION   INTERESTS. 

present  was  made  up  of  tugs  and  old  converted  ships.  It  possessed  ten 
or  twelve  or  fourteen  vessels  that  were  planned  to  suit  Isherwood-s  ma- 
chinery,  and  at  a  cost  which  nobody  knew.  There  had  been  $480,000,000 
expended  by  the  navy  during  the  war,  and  he  thought  that  $280,000,000 
of  that  sum  had  been  expended  in  the  steam  department,  yet  the  navy 
had  not  much  to  show  for  it.  Those  ships,  designed  and  built  for  Isher- 
wood,  were  lying  in  navy-yards  entirely  useless.  The  department  was 
trying  to  convert  one  of  them  into  something,  but  it  did  not  know 
whether  it  would  succeed  or  not.  It  had  been  found  necessary  to  take 
out  half  of  her  engines  to  make  room  for  the  people  to  live  on  board  of 
her,  and  for  the  coal  necessary  to  be  carried.  She  was  so  filled  with 
machinery  and  boilers  that  there  was  no  place  in  her  to  carry  coal  or  men. 
He  referred  to  the  Wampanoag.  When  that  vessel  went  on  the  trial 
trip  and  came  back  into  port,  she  had  to  send  her  crew  on  board  the 
New  Hampshire  receiving  ship,  because  she  had  no  place  to  put  them. 
There  were  twelve  or  fourteen  of  those  vessels  in  the  navy,  and  they 
were  practically  of  no  use.  The  navy  also  possessed  about  thirty  tugs, 
the  largest  of  them  about  three  hundred  and  fifty  tons.  Two  of  them 
had  been  sent  to  sea  the  other  day  to  take  care  of  the  iron-clad  Dicta 
tor,  going  to  Key  West,  and  they  had  got  into  a  gale  of  wind,  and  she 
had  to  take  care  of  them ;  and  these  were  two  of  the  best  of  them. 
Then  the  navy  had  also  a  lot  of  little  vessels,  not  inaptly  described  as 
canal-boats  ;  vessels  of  five  hundred  tons.  He  believed  that  thirty  ships 
such  as  the  Pereire,  on  the  French  line,  would  make  a  better  navy  than 
the  United  States  possessed  to-day.  There  were  a  great  many  iron-clads 
on  the  navy  list,  but  twenty-six  of  them  had  been  condemned  as  being  unfit 
for  anything,  except  for  old  iron,  and  no  one  would  buy  them  for  that. 
There  were  about  thirty  good  vessels  in  the  navy  altogether,  fit  for  war 
purposes,  and  these  were  wooden  vessels,  and  about  ten  monitors. 

The  CHAIRMAN.  I  understand  you  to  say  that  if  we  had,  at  the  com 
mencement  of  our  late  war,  thirty  such  vessels  as  you  speak  of — the  best 
European  steamers — they  would  have  been  as  efficient  as  was  our 
entire  navy.  .* 

Admiral  PORTER.  Twice  as  efficient;  I  say  that  without  any  hesita 
tion.  The  ships  that  we  had  could  catch  nothing.  We  never  had  a 
vessel  that  could  run  down  a  blockade-runner  during  the  whole  war, 
except  the  Vanderbilt  and  two  others.  Whenever  we  caught  blockaders  it 
was  either  with  one  of  those  fast  tugs-5-vessels  of  fifty  or  sixty  tons — or 
by  the  machinery  of  the  blockade-runner  breaking  down,  or  by  her  getting 
into  a  fog  and  being  surrounded  by  four  or  five  of  our  vessels,  when  she 
would  surrender  rather  than  be  fired  at.  I  do  not  think  that  during 
the  war  we  caught  30  vessels  by  fair  running;  that  I  am  quite  satisfied 
of.  Any  one  of  those  vessels  on  the  European  lines  can  run  away  from 
anything  we  have  got  in  our  navy,  and  can  run  them  out  of  sight  in  seven 
hours,  and  that  is  not  saying  a  great  deal.  The  iron-clads  that  we  have 
are  for  home  defense.  They  cannot  go  to  sea.  We  send  them  to  sea 
now  and  again,  because  we  have  nothing  else  to  send,  but  they  all  require 
two  or  three  vessels  to  go  with  them,  in  case  they  should  break  down  or 
get  out  of  coal.  They  are  therefore  of  no  use,  except  for  harbor  defense. 
In  case  of  war  with  a  foreign  nation,  such  as  Great  Britain  or  France, 
our  great  power  would  be  in  cutting  up  their  commerce.  Great  Britain 
could  not  stand  a  war  six  months  with  a  fleet  of  vessels  that  we  would 
send  out  after  her  commerce.  They  would  break  her  up  root  and  branch, 
and  that  kind  of  warfare  would  be  more  apt  to  bring  about  peace  than 
fighting  with  iron-clads  or  heavy  war  vessels.  The  Alabama  and  another 
confederate  vessel  destroyed  one  hundred  and  eighty -six  American  ves- 


NAVIGATION   INTERESTS.  185 

sels,  amounting,  I  think,  with  cargoes,  to  about  seventy  millions  of  dol 
lars.  Now,  if  two  vessels  could  do  that,  imagine  what  200  could  do. 
I  think  that  one  screw-propeller,  which  would  use  sail  power,  and  when 
necessary  put  on  steam,  to  chase  or  to  be  chased,  would  do  more  harm  to 
a  foreign  enemy  than  all  our  iron-clads  put  together.  We  have  other 
means  of  defending  our  coast,  by  torpedo-boats,  obstructions,  &c.  But 
we  want  a  good  many  fleet  cruisers.  Great  Britain  subsidizes  all  her  for 
eign  steamships.  The  profits  of  the  Ctiuard  line  amount  to  twenty-two 
per  cent,  a  year.  I  think  that  Great  Britain  has  about  three  thousand 
steamships  altogether,  and,  I  suppose,  that  there  must  be  at  least 
three  hundred  of  them  subsidized. 

Mr.  CALKIN.  You  spoke  about  the  decrease  of  American  engineers, 
how  is  it  in  regard  to  captains  and  officers  in  the  mercantile  marine? 

Admiral  PORTER.  They  would  constitute  a  force  which  we  would  be 
very  glad  to  draw  upon  in  case  of  emergency,  as  we  did  in  the  last  war. 
Our  naval  force  is  very  small,  a  mere  nucleus.  Every  naval  officer  in 
time  of  war  becomes  an  instructor.  Tliat  was  part  of  his  occupation  in  the 
last  war.  Most  of  our  officers  were  volunteers  from  the  merchant  service  5 
hardy,  brave  fellows,  but  without  education  as  to  the  duties  of  vessels 
of  war,  which  it  requires  a  pretty  long  time  to  learn.  But  in  a  war  with 
a  foreign  nation  we  could  not  have  a  better  class  of  men  for  the  purpose 
of  sending  home  prizes,  or  doing  other  subordinate  duty.  I  am  sorry  to 
say,  however,  that  the  best  class  of  men  in  our  mercantile  marine  are 
fast  disappearing.  When  we  had  sailing-vessels  across  the  Atlantic, 
our  packets  were  the  most  superior  vessels  in  the  world,  and  I  do  not 
think  that  even  the  best  naval  officers  were  better  men  than  the  captains 
of  those  ships.  They  were  the  best  class  of  merchant  seamen  in  the 
world.  They  are  all  disappearing.  There  is  no  field  for  them.  They 
do  not  command  steamships,  and  have  no  opportunity  of  displaying  what 
they  are,  or  of  learning  anything.  I  think  that  on  that  account  it  would 
be  very  advantageous  for  us  to  have  a  better  system.  All  our  good  sea 
men  have  left  our  service  and  have  gone  into  the  service  of  foreign  com 
panies,  almost  losing  their  identity,  and  hardly  knowing  that  they  have 
got  a  flag.  They  have  sailed  so  long  with  the  English,  the  French,  the 
Germans,  and  the  Dutch,  that  they  hardly  fraternize  with  their  own 
countrymen. 

The  CHAIRMAN.  What  would  be  the  effect  of  going  abroad  to  buy 
ships,  instead  of  building  them  here? 

Admiral  PORTER.  The  first  effect  would  be  a  very  big  political  con 
troversy. 

The  CHAIRMAN.  I  mean,  what  would  be  its  effect  upon  the  character 
of  our  mercantile  marine  and  of  our  navy  in  time  of  war  I 

Admiral  PORTER.  If  we  were  to  go  into  that  business  altogether,  it 
would  break  up  the  ship-building  in  this  country,  and  that  would  be  very 
impolitic.  Our  policy  is  to  keep  up  our  ship-building  interests.  There 
are  only  one  or  two  ships  on  the  stocks  in  New  York  now,  and  I  have 
seen  one  hundred  and  fifty  of  them  at  a  time. 

Mr.  CALKIN.  There  is  only  one  ship  on  the  stocks  in  New  York. 

Admiral  PORTER.  I  do  not  think  there  is  one  at  all  in  Boston.  I  was 
down  the  coast  last  summer,  from  Portland  through  the  different  cities, 
examining  navy-yards  and  dry-docks  and  ship-yards,  and  I  do  not  recol 
lect  seeing  any  more  than  that  one  ship  building  anywhere.  That  is  a 
very  sad  picture. 

Mr.  CALKIN.  There  are  one  or  two  iron  ships  building  at  Wilmington, 
Delaware. 

Admiral  PORTER.  Yes,  and  at  this  time  they  ought  to  be  building  a 


186  NAVIGATION   INTERESTS. 

hundred  ships  for  the  home-trade.  The  only  vessels  that  pay  now  are 
the  old  rat-traps  that  we  sell  out  of  the  navy  at  a  very  low  price,  and  on 
which  profit  may  be  made.  As  to  making  the  profit  that  the  European 
steamships  make,  they  do  not  begin  to  do  that  anywhere  in  this  country. 
To  put  our  people  in  a  fair  position  for  the  foreign  trade,  I  think  we 
ought  to  allow  them  to  buy  ships  abroad  to  the  extent  of  about  twelve 
ships  for  the  European  trade,  and  twelve  for  the  China  trade,  and  then 
shut  up  on  that  business,  and  allow  our  own  ship-builders  drawbacks  on 
all  the  articles  used  in  the  ship-building,  iron,  copper,  cordage?  hemp,  and 
labor.  The  high  duties  not  only  affect  the  merchant  service,  but  affect 
the  navy.  Every  piece  of  iron  that  we  use  in  the  navy  we  have  to  pay 
duty  on,  because  the  American  iron  is  charged  for  exactly  the  same  as 
the  English  would  cost  with  the  duty  on,  and  this  takes  away  one-third 
of  the  appropriations  of  the  navy.  The  department  has,  therefore,  to 
ask  for  larger  appropriations,  as  one-third  of  the  money  that  Congress 
appropriates  for  the  navy,  goes  off  in  duties. 

The  CHAIRMAN.  I  understood  you  to  say  that  you  think  it  will  be  very 
injurious  to  all  the  interests  of  our  merchant  marine,  and  to  our  means 
of  defense  in  time  of  war,  to  depend  upon  foreigners  for  our  ships? 

Admiral  PORTER.  I  think  so.  That  would  not  do.  But  I  say  I  would 
like  to  see  enough  of  ships  allowed  to  be  bought  on  the  Clyde,  under 
proper  naval  inspection,  to  enable  us  at  once  to  compete  with  Europe.  I 
am  quite  satisfied  that,  if  we  had  that  privilege,  we  would  drive  just  so 
many  foreign  ships  from  the  ocean.  We  can  beat  them  all  in  running 
ships  and  taking  care  of  passengers.  Every  American  crossing  the 
ocean  likes  to  travel  under  his  own  flag,  instead  of  with  foreigners- 
Then  again,  all  Americans  like  to  glorify  on  the  4th  of  July,  and  they 
find  it  very  difficult  to  do  that  on  board  of  a  foreign  ship.  We  have,  I 
suppose,  30,000  Americans  travelling  back  and  forward  every  year  for 
pleasure,  and  these  30,000  people  are  worth  considering.  I  do  not  think, 
however,  that  it  would  be  a  good  thing  to  have  indiscriminate  pur 
chasing  of  vessels  abroad.  I  think  it  should  be  under  the  control  of 
Congress.  If  we  had,  it  would  destroy  American  ship-building  forever. 
1  think  the  other  plan  is  preferable,  to  let  the  ship-builders  have  a  very 
liberal  drawback,  and  I  think  that  with  that  they  could  build  ships  for 
pretty  much  what  they  did  before  the  war. 

Mr.  MORRELL.  Could  it  not  be  done  by  calculating  the  cost  of  duties 
and  making  an  allowance  to  cover  it  of  so  much  per  ton? 

Admiral  PORTER.  Yes  5  there  would  be  no  trouble  about  that.  It  is 
very  easy  to  arrive  at  the  cost  of  a  ship.  You  can  arrive  at  it  within 
twenty  dollars.  When  we  build  a  ship  of  war,  we  can  tell  within  twenty 
dollars  what  it  costs,  for  every  pound  is  weighed,  and  every  foot  of  timber 
is  measured. 

Mr.  MORRELL.  In  case  it  should  be  deemed  wise  to  make  an  appro 
priation  for  building  such  vessels,  would  you.  have  them  built  in  the 
navy-yards  or  in  private  yards  ? 

Admiral  PORTER.  I  would  have  them  built  in  private  yards.  I  would 
not  have  them  mixed  up  at  all  with  navy-yards.  They  would  cost  more 
in  the  navy  yards,  because  there  would  be  a  great  deal  better  work  put 
in  them.  They  cannot  build  a  bad  ship  in  the  navy-yards,  they  do  not 
know  how. 

Mr.  WASHBURN.  If  drawbacks  were  allowed  on  all  materials  entered 
into  the  construction  of  ships,  could  we  build  vessels  as  cheap  as  they 
build  them  on  the  Clyde? 

Admiral  PORTER.  No,  sir  5  labor  here  costs  double  what  it  costs  on 
the  Clyde. 


NAVIGATION   INTERESTS.  187 

Mr.  WASHBURN.  Then,  if  we  cannot  build  as  cheap,  we  cannot  run 
steamships  without  subsidies. 

Admiral  PORTER.  Not  at  all ;  I  do  not  think  that  possible. 

Mr.  WA3HBURN.  How  much  subsidy  do  you  suppose  should  be  given 
to  steamships? 

Admiral  PORTER.  I  would  give  them  all  the  letter  pos  *ige. 

Mr.  WASHBURN.  Would  any  one  undertake  to  build  and  run  a  line  of 
steamships  for  that? 

Admiral  PORTER.  Yes,  I  think  so.  I  think  they  ought  not  to  have 
a  dime  beyond  that.  I  have  spent  four  years  myself  in  running 
merchant  steamships.  I  ran  for  three  years  to  Chagres,  and  I  car 
ried  a  ship  round  the  world,  without  any.  subsidy  at  all.  Before  the 
rebellion,  I  took  the  Golden  Age  to  Australia,  and  there  were  in  that 
time  twelve  vessels  running  between  Sidney  and  Melbourne.  In  six 
months  I  ran  every  ship  of  them  off.  The  last  trip  I  made  I  carried 
seven  hundred  passengers,  while  the  London,  the  best  ship  they  had, 
carried  only  nineteen ;  the  Golden  Age  was  run  by  American  officers 
who  took  trouble  to  please  the  passengers.-  In  that  way  I  know  exactly 
how  it  pays  to  carry  letters.  We  carried  from  London,  at  the  time  I 
left,  forty-two  thousand  letters,  the  cheapest  of  them  twenty  cents,  and 
many  of  them  a  dollar.  The  postage  all  went  into  the  hands  of  the 
British  government,  and  we  received,  I  think,  only  about  two  thousand 
dollars  for  carrying  the  whole  concern. 

The  CHAIRMAN.  Has  England  any  system  of  naval  reserves  in  her 
merchant  marine? 

Admiral  PORTER.  Yes;  a  very  large  system.  Every  man  of  the 
British  navy  is  amenable  to  a  certain  law,  by  which  he  is  obliged  to  serve 
in  case  of  war.  England  has  in  her  merchant  service  a  large  reserve  ot 
men,  who  are  always  obliged  to  be  ready  to  present  themselves  at  a 
moment's  notice.  She  can  raise  eighty  thousand  seamen  at  a  very  short 
time.  They  are  in  the  merchant  marine  in  the  time  of  peace,  and  the 
moment  they  are  called  upon  in  the  time  of  war,  they  are  obliged  to  go. 
They  are  conscripted  without  any  bounty  at  all. 

The  CHAIRMAN.  So  that  she  has  a  very  much  larger  contingent  naval 
force  than  her  naval  force  proper"? 

Admiral  PORTER.  Yes.  Her  naval  reserve,  which  she  can  get 
within  two  weeks,  amounts  to  twenty  thousand  men.  Her  merchant 
marine  is  far  superior  to  ours.  In  the  first  place,  no  man  will  be  shipped 
in  the  English  merchant  marine  unless  he  can  show  an  honorable  dis 
charge  from  the  last  vessel  he  left.  They  get  good  pay,  and  are  better 
taken  care  of  than  our  sailors.  They  are"  getting  the  same  class  of  men 
in  their  service  that  we  used  to  have.  Their  steamships  are  kept  up 
exactly  on  the  same  principle  as  a  vessel  of  war;  their  officers  are 
uniformed  the  same  as  the  officers  of  the  navy,  and  they  are  all  under 
naval  regulations.  Within  the  last  ten  years  Great  Britain  has  made 
the  most  wonderful  strides  in  that  direction. 

Mr.  HOLMAN.  What  is  your  opinion  as  to  the  extent  to  which  iron  will 
enter  into  the  construction  of  ships  hereafter? 

Admiral  PORTER.  I  think  that  the  steamers  that  cross  the  ocean 
should  not  be  built  of  anything  else  but  iron.  I  think  that  if  we  can 
get  these  drawbacks  you  will  find  iron  ships  going  up  everywhere,  and 
that  no  wooden  ones  will  be  built.  The  life  of  a  wooden  ship  is  only 
ten  or  twelve  years,  at  the  most.  tVe  have  an  old  iron  ship  at  Norfolk 
that  was  introduced  in  the  navy  in  1846.  She  was  a  failure.  She  was  got 
up  by  some  officer  who  did  not  understand  exactly  what  he  was  about. 


188  NAVIGATION   INTERESTS. 

Her  hull  is  as  good  to-day  as  the  day  slie  was  built,  but  she  is  of  no  use 
at  all  as  a  sea-going  vessel. 

Mr.  HOLM  AN.  What  will  probably  be  the  policy  of  the  government  in 
regard  to  building  ships  for  war  purposes  hereafter  ? 

Admiral  PORTER.  We  will  probably  build  clippers  of  wood,  but  not 
steamers.  Steam  takes  away  all  life  from  a  wooden  vessel.  At  present 
we  do  not  allow  our  ships  of  war  to  use  steam  at  all.  They  are  ordered 
to  take  tugs  Avhen  they  are  going  to  sea,  and  they  make  their  voyages 
under  sail.  The  engine  is  put  away,  and,  except  in  great  emergencies, 
they  are  not  allowed  to  burn  coal.  The  result  is  that  they  come  back 
with  the  engines  in  perfect  order,  and  the  hull  not  injured  by  heat. 
Under  that  arrangement,  wooden  ships  will  last  for  years.  We  have 
now  at  the  Naval  Academy  a  wooden  ship,  the  Constitution,  that 
was  built  in  1796,  and  she  is  as  good  as  the  day  she  was  built;  and  we 
have  also  the  Macedonian,  lying  alongside  of  her,  built  by  the  British, 
in  1810  or  '12.  She  is  a  teak-built  ship,  and  she  is  as  good  as  the  day 
she  was  built. 

The  CHAIRMAN.  Do  you  know  anything  about  the  composite  ships, 
built  of  iron  frames  and  wooden  planking  I 

Admiral  PORTER.  They  do  not  last  at  all.  Wood  and  iron  do  not  go 
together  at  sea.  There  is  always  an  acid  in  the  wood,  and  in  a  short 
time  that  acid  eats  a  big  hole  in  the  iron.  If  you  are  going  to  build  an 
iron  ship,  the  best  way  is  to  build  it  of  all  iron,  except  the  decks. 

Mr.  HOLMAN.  You  spoke  of  there  being  thirty  good  ships  in  our  navy ; 
are  they  all  wooden  ones  ? 

Admiral  PORTER.  Yes,  sir;  they  are  all  wooden.  We  have  no  iron 
sailing-vessels.. 

Mr.  HOLMAN.  What  will  be  the  policy  of  the  government  hereafter  in 
building  vessels  intended  for  general  war  purposes? 

Admiral  PORTRR.  The  policy  will  be  to  build  two  classes  of  vessels ; 
one  of  iron  vessels  for  harbor  defense,  and  one  class  for  going  to  sea. 
That  policy  we  have  never  tried  yet.  The  European  governments 
have  made  mistakes  in  regard  to  building  iron  war-vessels.  They 
tried  everything,  and  have  failed  so  far  as  making  a  perfect  vessel  of 
war,  and  the  prospects  are  now  that  we  will  go  to  work  and  take  advant 
age  of  all  their  mistakes.  When  the  English  do  use  wood,  they  use  the 
teak  wood.  They  get  it  from  China  at  a  very  heavy  expense,  and  an 
English  ship  will  cost  three  times  as  much  as  any  ship  we  ever  build. 
Their  last  ships,  built  all  of  iron,  cost  some  five  or  six  hundred  thousand 
pounds  sterling. 

Mr.  HOLMAN.  All  the  commercial  powers,  including  England,  France, 
and  Russia,  not  only  experiment  with  iron  sea- vessels,  but  have  them  in 
the  service  ? 

Admiral  PORTER.  Yes;  they  use  them  altogether;  they  very  seldom 
use  anything  else.  There  is  only  one  objection  to  an  iron  vessel ;  that 
is,  that  she  fouls  her  bottom  so  much.  The  English  have  overcome  that 
in  a  great  measure,  I  think,  by  making  a  planking  under  her  and  cop 
pering  that. 

Mr.  HOLMAN.  What  would  be  the  effect  of  a  policy  of  this  kind.  First, 
to  permit  only  American  built  ships  to  be  used  in  the  domestic  trade  ; 
secondly,  to  allow  American  ship-builders  a  drawback  on  materials  used ; 
and,  thirdly,  to  allow  Americans  to  purchase  ships  abroad,  with  a  tax 
on  such  foreign  ships  of,  say  fifteen  per  cent. 

Admiral  PORTER.  The  difficulty  would  be  first  in  the  labor.  The 
labor  is  much  more  expensive  here  than  it  is  abroad,  and  there  would 
be  that  much  in  favor  of  a  foreign  ship-builder.  Labor  in  England 


NAVIGATION    INTERESTS.  189 

averages  one  dollar  and  a  half  a  day,  and  here  it  averages  three  dollars. 
If  the  American  ship-builder  gets  a  drawback  on  all  the  materials,  you 
put  him  at  once  on  an  equality  with  the  English  ship-builder,  except  in 
regard  to  labor. 

The  CHAIRMAN.  Is  not  our  labor  more  efficient  ? 

Admiral  PORTER.  No,  sir ;  we  do  not  build  as  good  engines  here  as 
they  do  in  England. 

Mr.  HOLMAN.  Looking  at  this  question  as  one  of  national  concern  in 
respect  of  employing  merchant  vessels  for  war  purposes;  how  far  would 
the  allowing  this  policy  of  purchasing  vessels  abroad  by  American  citi 
zens  contribute  to  that  object,  in  case  of  war? 

Admiral  PORTER.  It  would  contribute  very  greatly.  As  I  said  before, 
if  we  had  had  thirty,  or  forty  such  vessels  as  are  now  trading  t&  New 
York,  during  the  war,  every  port  in  rebeldom  would  have  been  closed, 
not  a  bale  of  cotton  would  have  got  out,  nor  would  anything  have  got  in. 

Mr.  HOLMAN.  Is  there  any  other  nation  that  adopts  such  an  exclusive 
policy  as  we  have  adopted  heretofore  with  reference  to  giving  registry 
to  foreign  vessels  ? 

Admiral  PORTER.  I  do  not  think  that  any  nation  does.  All  other 
nations  are  more  liberal.  Our  policy  has  been  always  to  encourage  ship 
building.  The  result  has  been  that  we  have  built  the  finest  ships  in  the 
world.  Until  latterly,  I  have  not  seen  any  ships  to  compare  with  them. 

Mr.  HOLMAN.  Has  not  the  policy  of  using  iron  instead  of  wood  pro 
duced  a  revolution  in  ship-building? 

Admiral  PORTER.  It  has  in  England,  because  iron  there  is  so  much 
cheaper  than  wood.  If  they  could  get  wood  as  cheap  as  we  can,  they 
would  use  it. 

Mr.  HOLMAN.  Do  you  think  that  the  building  of  wooden  vessels  in 
this  country  will  be  continued? 

Admiral  PORTER.  Yes;  except  steamers.  We  get  white  oak,  and  red 
oak,  and  hackmatack,  and  locust  cheaply.  It  is  only  when  we  come  to 
live  oak  timber  that  it  is  found  expensive ;  but  this  other  timber  is  very 
much  cheaper  than  iron. 

Mr.  HOLMAN.  Can  we  successfully  compete  with  other  nations  in  the 
commerce  of  the  world  except  with  steamships  fl 

Admiral  PORTER.  Yes;  under  the  fostering  care  of  the  government. 
We  could,  if  the  government  would  look  out  for  the  mercantile  interests 
of  the  country,  as  the  governments  of  Great  Britain  and  France  do.  Ten 
years  ago  France  had  comparatively  no  commerce,  and  she  has  now  got 
a  commerce  of  two  and  a  half  millions  of  tons.  I  remember  well  that 
it  was  very  seldom  you  could  see  a  large  French  ship.  Now  you  find 
French  commerce  all  over  the  world.  Ten  years  ago  a  Frenchman  could 
not  run  a  steamship;  he  did  not  know  anything  about  it.  We  always 
associated  a  Frenchman  aboard  a  ship  as  a  "  sea-sick  Frenchman,"  arid  as 
not  fit  to  be  trusted  with  a  passenger  ship.  But  now  the  French  Mes- 
sagerie  line  has  run  all  the  British  lines  off  where  it  is  in  competition 
with  it.  The  French  have  started  a  line  to  Australia,  and  are  now  pre 
pared  to  start  a  line  from  California  to  China,  which  will  run  our  Pacific 
mail  steamship  line  right  off. 

Mr.  HOLMAN.  Are  the  French  ships  most  built  in  France,  or  are  they 
purchased  abroad"? 

Admiral  PORTER.  All  the  French  steamships  that  are  running  here 
are  purchased  in  England.  The  French  government  allows  every  latitude 
in  that  way,  and  is  encouraging  its  commerce  without  reference  to  ship 
building. 


190  NAVIGATION    INTERESTS. 

Mr.  HOLMAN.  And  the  French  government  is  paying  heavier  subsidies 
than  the  English? 

Admiral  PORTER.  Yes;  the  French  exact  higher  rates  of  postage. 
The  Postmaster  General  here  has  not  been  able  to  make  a  satisfactory 
arrangement  with  the  French  government  for  the  reduction  of  postage. 
The  French  claim  not  only  half  of  the  postage  on  this  side,  but  half  on 
the  other  side;  and  they  charge  double  the  amount  of  postage  that  is 
charged  by  any  other  nation,  and  thus  they  make  foreigners  pay  their 
subsidies. 

Mr.  HOLMAN.  Is  not  the  largest  portion  of  our  tonnage  employed  in 
the  domestic  trade? 

Admiral  PORTER.  Yes,  sir.  Our  tonnage  is  now  very  much  less  than 
it  use'd  to  be.  We  were  nearly  up  to  Great  Britain  in  amount  of  tonnage, 
but  we  have  lost  nearly  a  million  of  tons. 

Mr.  HOLMAN.  If  we  cannot  adopt  some  mode  by  which  the  building 
of  ships  in  Jhis  country  may  be  encouraged,  is  it  not  then  a  simple 
question  of  whether  the  foreign  commerce  of  the  country  shall  be  car 
ried  on  altogether  in  foreign  bottoms,  or  whether  American  citizens  shall 
be  permitted  to  purchase  vessels  abroad  and  put  them  under  the  Amer 
ican  flag  ? 

Admiral  PORTER.  As  the  general  thing,  perhaps,  the  latter  would  be 
a  good  plan;  but  I  myself  should  not  favor  a  rule  that  would  allow  that 
thing  to  be  universal.  While  getting  possession  of  the  ocean  again  we 
must  still  protect  ship  building. 

Mr.  HOLMAN.  Is  not  that  an  alternative  ?  Unless  we  can  adopt  a 
policy  that  will  revive  the  ship-building  interest,  is  it  not  a  question  of 
whether  the  foreign  commerce  of  the  country  shall  be  carried  on  in  for 
eign  vessels,  or  carried  on  in  vessels  built  abroad  and  owned  by  Ameri 
can  citizens,  run  under  the  American  flag  ? 

Admiral  PORTER.  As  a  matter  of  course.  The  first  object  is  to  in 
crease  the  commerce  of  the  country,  because  upon  commerce  depends 
the  paying  oif  the  national  debt,  and  every  additional  steamer  that  is 
put  on  adds  so  much  more  to  our  commerce. 

Mr.  HOLMAN.  So  that  we  have  an  object  in  increasing  our  commerce, 
apart  from,  and  without  reference  to,  ship-building  ? 

Admiral  PORTER.  Yes;  of  course. 

The  CHAIRMAN.  Do  you  believe  that  there  is  any  difficulty  in  renew 
ing  our  commerce  as  fast  as  is  required  by  building  our  ships  at  home  ? 

Admiral  PORTER.  No ;  provided  you  hold  out  an  inducement  for  peo 
ple  to  build,  have  drawbacks,  and  allow  for  labor. 

The  CHAIRMAN.  Can  our  commerce  be  renewed  within  a  reasonable 
time,  and  as  fast  as  is  required,  if  inducements  are  held  out  to  ship 
builders  ? 

Admiral  PORTER.  Yes ;  with  the  exception  that  I  have  mentioned. 
We  are  now  at  that  point  that  I  think  we  should  allow  a  certain  num 
ber  of  vessels  to  be  purchased  abroad  for  the  purpose  of  supplying  our 
immediate  wants.  They  would  amount  to  about  twelve. 

Mr.  MORRELL.  Cannot  these  vessels  be  built  in  this  country  and  put 
upon  the  lines  almost  as  quickly  as  they  can  be  procured  abroad  ? 

Admiral  PORTER.  No ;  they  cannot  begin  to  do  it  here,  unless  you  allow 
them  drawbacks,  and  drawbacks  on  labor. 

Mr.  MORRELL.  By  allowing  drawbacks,  would  it  not  be  better,  instead 
of  buying -so  many  vessels  abroad,  to  encourage  the  building  of  them 
in  this  country,  and  could  you  not  get  vessels  built  here  to  answer  every 
purpose  ? 

Admiral  PORTER.  They  have  greater  facilities  abroad.    The  great 


NAVIGATION   INTERESTS.  191 

machine  shop  of  this  country  is  bound  to  be  on  the  banks  of  the  Dela 
ware,  at  Chester,  Pennsylvania,  and  at  Wilmington,  Delaware.  I  ain 
personally  interested,  for  I  own  a  large  piece  of  water  front  in  Chester, 
where  they  are  getting  up  these  machine  shops ;  but  I  must  say,  not 
withstanding,  that  1  do  not  think  they  can  build  steamships  here  as 
they  can  in-  England.  They  would  make  a  failure  at  first,  if  they 
attempted  to  rush  the  thing  through.  But,  if  you  go  to  work  and  give 
these  people  the  right  of  purchasing  12  or  14  ships  to  start  upon,  and 
then  give  the  builders  of  this  country  drawbacks,  and  let  them  go  to 
work,  I  think  that,  in  the  course  of  three  or  four  years,  we  would  be 
able  to  compete  with  Great  Britain. 

Mr.  WASHBURN.  Suppose  we  should  agree  to  grant  a  drawback  to 
everybody  who  would  build  ships  in  this  country ;  suppose  we  should 
say  to  the  people  of  Baltimore,  Philadelphia,  Boston,  and  New  York, 
"  Go  to  work  and  establish  lines  of  steamers,  to  leave  twice  or  three 
times  a  week — for  instance,  to  leave  Boston  on  Monday,  New  York  on 
"Wednesday,  and  Philadelphia  on  Saturday — and  you  shall  have  the 
mails,'-  would  capitalists  organize  and  establish  steamship  lines? 

Admiral  PORTER.  I  think  so. 

Mr.  WASHBURN.  Then  how  long  would  it  take  to  get  steamships  for 
the  purpose  in  this  country  ? 

Admiral  PORTER.  Two  or  three  years.  You  cannot  do  it  in  any  less. 
You  cannot  begin  to  show  in  less  than  three  years.  It  takes  a  long  time 
to  build  the  engines,  and  these  ships  have  to  be  large  vessels. 

Mr.  WASHBURN.  Could  you  not  lend  them  some  of  your  engines  out 
of  the  navy  ? 

Admiral  PORTER.  They  would  not  have  them.  The  most  that  we 
have  been  offered  for  four  ships  that  cost  the  government  nearly  a  mil 
lion,  is  one  hundred  thousand  dollars  each  ;  and  I  do  not  think  the 
people  who  offered  it  were  in  earnest  then. 

Mr.  CALKIN.  Supposing  that  we  should  subsidize  lines  from  Balti 
more,  Philadelphia,  New  York,  and  Boston,  and  that  an  American 
steamer  left  New  York  on  Monday,  writh  a  foreign  steamer  leaving  on 
Tuesday,  and  a  Philadelphia  steamer  leaving  on  Wednesday,  would  you 
say  that  the  New  York  merchant  should  not  be  allowed  to  send  his  let 
ters  by  the  steamer  leaving  on  Tuesday  f 

Admiral  PORTER.  No,  he  could  send  them  as  he  liked. 

Mr.  CALKIN.  That  is  where  the  rub  comes  in  about  allowing  mail 
money.  We  cannot  secure  the  full  mails  for  American  ships. 

Admiral  PORTER.  The  merchant  has  to  be  governed  by  circumstances. 
The  thing  will  work  some  day  in  the  same  way  in  favor  of  the  Amer 
ican  ships  when  we  drive  off  foreign  vessels,  there  must  be  a  beginning 
and  a  tussle  for  the  prize. 

Mr.  WASHBURN.  The  swiftest  ships  will  take  the  mails? 

Admiral  PORTER.  Yes;  they  are  the  ones  that  will  take  the  mails. 

Mr.  CALKIN.  You  cannot  build  ships  to  beat  these  foreign  propellers  ? 

Admiral  PORTER.  You  cannot  build  ships  to  do  as  well  as  they  do 
now;  but  offer  bounty  and  you  will  see  a  difference. 

Mr.  CALKIN.  I  know  that  gentlemen  say  they  can  make  better  time 
with  side- wheel  steamers. 

Admiral  PORTER.  I  do  not  believe  that.  Sometimes  it  is  not  so  much 
in  the  ship  as  in  the  captain.  It  is  the  bold  running  that  does  the  work. 
Put  an  American  captain  upon  one  of  those  steamships,  and  in  from 
nine  to  twelve  months  he  will  beat  the  foreign  vessels  every  trip. 

Mr.  CALKIN.  You  made  a  statement  that  the  mail  money  would  be  a 
sufficient  subsidy  for  steamship  lines  ? 


192  NAVIGATION    INTERESTS. 

Admiral  PORTER.  I  did  not  say  that  it  would  be  a  sufficient  subsidy, 
but  I  said  that  they  would  be  satisfied  with  it,  and  would  commence 
with  it. 

Mr.  CALKIN.  Why  could  not  the  American  steamship  lines  compete 
with  the  foreigners  before  the  war? 

Admiral  PORTER.  Because  I  think  the  American  lines  ran  the  wrong 
class  of  vessels.  I  knew  the  Collins  line  very  well,  and  I  know  that 
they  could  not  run  a  day  in  competition  with  the  present  line  of  steam 
ships.  They  burned  an  immense  quantity  of  coal  ;  they  were  fitted  out 
and  fitted  up  in  the  most  sumptuous  manner;  they  had  large  crews,  a 
large  number  of  officers  and  a  large  number  of  engineers,  for  they  had 
most  powerful  engines.  They  were  run  at  the  full  speed,  and  the  com 
pany  had  not  enough  ships  on  the  line  to  enable  them  to  have  proper 
relays,  so  that  they  began  to  deteriorate  very  rapidly,  and  they  ran  them 
out  in  a  very  short  time.  They  had  very  large  buildings  in  !New  York, 
a  great  many  officers,  and  a  great  many  people  connected  with  them. 
All  these  had  to  be  paid.  Then  there  were  a  great  many  dead-heads ; 
so  that  I  used  to  be  astonished  how  they  kept  running  at  all.  I  think 
that  I  could  have  carried  on  the  business  at  one-third  the  amount  that 
it  cost  to  carry  it  on.  Everybody  had  a  chance  at  these  steamships. 

Mr.  CALKIN.  You  mean  to  say  distinctly  that  the  American  steam 
ship  lines  before  the  war  were  badly  managed  ? 

Admiral  PORTER.  I  think  they  were. 

Mr.  CALKIN.  And  then  also  the  subsidy  to  the  Collins's  line  was  with 
drawn  ? 

Admiral  PORTER.  Yes. 

Mr.  CALKIN.  You  also  remember  the  man  who  was  most  prominent  in 
the  withdrawing  of  that  subsidy  J 

Admiral  PORTER.  I  do  not. 

Mr.  CALKIN.  Mr.  Vanderbilt  did  more  to  break  up  the  American  line 
to  Europe  than  any  other  man. 

Mr.  MORRILL.  Can  you  tell  us  the  comparative  cost  of  running  side- 
wheel  steamers  and  screw  steamers. 

Admiral  PORTER.  The  cost  is  very  much  less  with  propellers.  If  you 
have  a  fair  wind,  or  a  wind  abeam,  and  have  enough  of  it,  you  need  not 
use  your  steam  scarcely. 

Mr.  MORRELL.  They  are  run  with  much  greater  economy  ? 

Admiral  PORTER.  Very  much  greater;  and  then  they  have  very  much 
more  storage  room.  I  know  they  say  there  are  some  places  where  they 
can  run  a  side-wheel  steamer  cheaper  than  a  propeller ;  but  I  doubt  it. 
That  is  from  San  Francisco  to  China.  A  gentleman  was  trying  to  con 
vince  me  of  that  the  other  day. 

Mr.  JUDD.  If  the  government  should  enter  upon  this  system  of  sub 
sidies,  how  would  it  affect  naval  estimates  I 

Admiral  PORTER.  It  would  save  the  government  millions  of  dollars 
in  case  of  war,  because  I  do  not  want  better  ships  than  those  steamships 
are ;  and  then  they  are  kept  in  order  all  the  time.  It  is  to  the  interest 
of  the  owners  to  keep  them  in  perfect  order.  There  is  not  a  ship  run 
ning  on  those  lines  that  is  not  put  into  thorough  order  whenever  she 
comes  into  port.  We  can  take  such  ships,  run  bulkheads  across  them, 
and  fit  them  for  sea  as  privateers,  in  a  week. 

Mr.  JUDD.  And  the  Navy  Department,  if  the  system  were  entered 
upon,  would  not,  as  a  rule,  need  to  be  constructing  additional  vessels'? 

Admiral  PORTER.  We  would  have  to  construct  a  certain  number. 
My  purpose  is  to  keep  the  navy  down  to  one  hundred  and  eighty  ves 
sels.  It  is  now  two  hundred.  During  the  war  we  had  a  thousand  ves- 


NAVIGATION    INTERESTS.  193 

sols.  Eight  hundred  of  that  thousand  were  merchant  ships  that  had  been 
bought  by  the  department.  We  built  very  few  good  ones.  The  British  gov 
ernment  has  a  contract  with  these  subsidized  lines  under  which  it  can  take 
the  ships  for  government  purposes  when  it  needs  them.  I  never  had  an 
idea  what  the  British  steam  commerce  was  until  1  went  up  the  Balaklava, 
during  the  Crimean  war,  just  before  the  fall  of  Sebastopol;  and  I  sup 
pose  that  there  were  at  that  time  in  the  different  ports  about  there, 
three  or  four  hundred  of  the  most  magnificent  steamships,  taken  at  a 
moment's  notice. by  the  government,  and  on  which  the  government  had 
not  to  pay  a  dollar  of  repairs.  I  went  over  in  one  of  them,  an  ordinary 
ship,  and  she  went  at  the  rate  of  14  miles  an  hour. 

The  CHAIRMAN.  You  spoke  of  the  failures  that  w^ere  made  in  con 
structing  vessels  for  the  navy  when  the  war  broke  out.  Is  not  that 
inevitable  after  a  long  period  of  peace,  from  depending  entirely  upon  the 
Naval  Department  for  constructing  war  vessels,  and  would  not  that  be 
obviated  by  providing  for  the  supervision  of  the  building  of  mercantile 
vessels  by  a  naval  officer  ? 

Admiral  PORTER.  The  government  would  have  no  right  to  do  that, 
except  in  cases  Avhere  it  gave  contracts  on  subsidies.  Not  only  that, 
but  there  are  just  as  clever  constructors  in  the  merchant  marine  as  in 
the  navy.  Some  of  the  best  constructors  in  the  world  are  those  who  had 
charge  of  our  merchant  marine. 

The  CHAIRMAN.  The  navy,  of  course,  is  only  brought  into  use  in  time 
of  war,  which  occurs  at  long  intervals,  while  the  merchant  marine  is  in 
constant  use,  and  is  consequently  brought  to  greater  perfection.  The  point 
I  want  to  get  at  is  this — whether  by  the  government  pursuing  the  same 
policy  which  the  English  government  pursues  in  respect  to  its  merchant 
marine,  having  it  under  its  supervision,  and  having  the  vessels  con 
structed  under  the  supervision  of  naval  officers,  that  would  not  con 
tribute  greater  efficiency  to  the  navy. 

Admiral  PORTER.  No  doubt  of  that.  But  we  could  not  carry  that 
out  with  the  whole  merchant  marine,  because  it  would  be  very  dis 
tasteful  to  merchants.  Many  ships  must  be  built  for  carrying  mer 
chandise. 

The  CHAIRMAN.  I  mean  only  as  applied  to  such  number  of  vessels  as 
would  be  wanted  to  make  an  efficient  navy. 

Admiral  PORTER.  It  ought  to  be  done  in  regard  to  subsidized  vessels, 
but  not  to  the  whole  merchant  marine.  Merchants  would  not  be  at  all 
pleased  to  have  such  interference.  Sailing-vessels,  for  instance,  have 
to  be  built  for  carrying  purposes,  and  are  entirely  unfit  for  war  pur 
poses  ;  and  some  classes  of  steamers  have  also  to  be  built  for  carrying 
purposes  that  would  be  entirely  useless  as  vessels  of  war.  Therefore, 
as  to  those  classes  of  vessels,  merchants  would  not  consider  it  a  favor 
for  the  government  to  interfere  with  their  building.  A  naval  officer 
would  have  his  ideas  which  would  be  entirely  different  from  those  of 
the  constructor.  The  naval  officer  would  have  an  eye  to  the  carrying  of 
guns  and  to  speed,  while  the  merchant  would  have  an  eye  simply  to  the 
quantity  of  cargo  the  vessel  could  carry. 

The  CHAIRMAN.  I  am  only  speaking  of  this  policy  so  far  as  it  would 
give  us  an  efficient  navy  at  the  least  cost  to  the  government  j  so  that 
the  government  could  always  have  a  navy  at  hand. 

Admiral  PORTER.  The  ships  that  would  be  employed  by  the  govern 
ment  under  contract  for  carrying  the  mails  are  the  only  ones  as  to  which 
you  could  put  such  a  law  into  operation  with  effect. 

The  CHAIRMAN.  Has  Franco  good  facilities  for  ship-building  ? 

Admiral  PORTER.  Yes,  sir ;  their  commerce  is  increasing  very  rapidly. 
13  N  i 


194  NAVIGATION    INTERESTS. 

They  build  very  handsome,  beautiful  wooden  ships.  They  build  iron 
ships,  too.  They  have  very  fine  machine  shops  in  France.  All  their 
naval  vessels  (and  their  navy  amounts  to  490,000  tons)  are  built  at 
home. 

Mr.  CALKIN.  Have  they  really  improved  upon  our  models? 

Admiral  PORTER.  Very  much.  There  are  no  models  for  men-of-war 
equal  to  the  French  models.  The  French  ships  have  been  always  famous 
as  fleet  sailers.  The  first  great  model  of  a  ship  ever  made  was  made 
by  a  Frenchman.  In  the  old  time,  whenever  an  Englishman  captured 
a  French  frigate  and  put  an  English  crew  on  board  of  her,  she  could 
run  away  from  the  whole  British  fleet.  They  build  some  of  the  best 
vessels  in  the  world. 

Mr.  WASHBUEN.  I  understand  you  to  say  that  the  iron-clad  ships  of 
England  and  France  are  failures. 

Admiral  PORTER.  We  think  so.  Here  is  the  Monarch,  coming  to 
this  country  with  the  body  of  George  Peabody.  She  cannot  get  into 
any  of  our  ports,  except  Portland,  Maine ;  and  that  fact  is  a  failure  to 
commence  with.  We  are  very  glad  to  have  English  ships  built  in  that 
way.  None  of  those  large  vessels  can  come  into  our  ports,  and  there 
fore  they  cannot  do  us  any  harm.  They  have  great  speed,  but  they 
cannot  fight  with  their  guns  in  a  sea-way.  They  roll  thirty  degrees, 
whereas  our  monitors  only  roll  seven  degrees.  Our  monitors,  as  harbor 
defenses,  are  a  success,  and  other  governments  are  coming  round  to  the 
monitor  system.  It  is  the  only  true  principle.  The  Dunderberg  was 
the  finest  ram  that  we  had,  and  is  now  the  best  ram  the  French  have 
in  their  navy. 

The  CHAIRMAN.  I  understand  you  to  say  that  you  think  the  most 
economical  and  best  policy  would  be  for  the  government  to  maintain  a 
comparatively  small  navy  in  time  of  peace,  and  to  depend  upon  the 
merchant  marine  as  an  auxiliary  force  ? 

Admiral  PORTER.  No;  that  would  not  be  my  policy.  If  I  had  the 
money  I  would  have  a  good  deal  larger  navy,  one  superior  to  any  nation. 
But  we  have  proposed  the  navy  to  be  kept  at  one  hundred  and  eighty 
vessels,  which  is  a  very  small  navy  for  this  country;  but  it  is  about  as 
much  as  the  people  would  stand.  We  could  not  get  along  with  a  much 
smaller  naval  force,  and  could  add  to  its  effectiveness  by  having  mail 
steamers  properly  built,  which  we  can  use  in  time  of  emergency.  That 
is  what  this  country  has  got  to  do.  We  have  not  only  to  depend  upon 
merchant  vessels,  but  upon  officers  in  the  merchant  marine,*  in  case  of 
a  long  war,  because  a  large  portion  of  our  people  cannot  be  made  to 
understand  the  necessity  of  a  great  nation  like  ours  keeping  up  a 
respectable  navy. 

The  CHAIRMAN.  How  much  would  the  government  have  saved  directly, 
in  cost,  if  it  had  had  thirty  or  forty  of  the  class  of  vessels  that  you  speak 
of,  and  could  have  brought  them  into  use  at  once "? 

Admiral  PORTER.  The  government  would  have  saved  thirty  or  forty 
millions  right  off,  because  we  run  into  a  good  many  wild  schemes  in 
building  vessels.  We  cannot  tell  all  that  it  would  have  saved.  It  would 
have  stopped  the  rebels  from  getting  their  supplies  as  they  did.  The 
blockade  runners  laughed  at  everything  we  had  in  the  shape  of  vessels. 

The  CHAIRMAN.  I  understood  you  to  say  that  the  navy  cost  $480,000,- 
000  during  the  war,  and  that  we  dkl  not  then  get  an  efficient  navy "? 

Admiral  PORTER.  Yes;  it  cost  us  8480,000,000. 

The  CHAIRMAN.  Could  not  the  half  of  that  have  been  saved,  if  we 
had  had  thirty  or  forty  fast  mercantile  steamships  ? 

Admiral  PORTER.  They  would  have  saved  a  great  deal.  I  cannot  say 
how  much. 


NAVIGATION   INTERESTS.  195 


LETTERS  FROM  AMERICAN  SHIP-BUILDERS  AND  OWNERS. 

A  circular  letter  embracing  the  following  interrogatories,  and  also  re 
questing  their  views  on  the  general  subjects  under  investigation,  was 
addressed  to  a  large  number  of  merchants,  ship-owners,  and  builders, 
representing  the  navigation  interests  of  the  country: 

What  is  the  present  condition  of  ship-building  at  your  town  as  compared  with  the 
period  from  1854  to  1800  ? 

What  are  the  present  average  rates  of  wages  paid  to  first-class  mechanics  on  ship- 
work  ? 

What  were  the  average  rates  of  same  from  1854  to  1860  ? 

What  is  the  present  cost  per  ton  for  building  sail- vessels  and  of  steamers  t 

Cost  of  same  from  1854  to  1860  ? 

What  was  the  cost  of  materials  for  each  ton  from  1854  to  1860  ? 

What  is  the  cost  per  ton  of  same  at  the  present  time  ? 

Amount  of  duty  op  materials  in  a  thousand-ton  ship  from  1854  to  1860  ;  also  amount 
of  same  at  the  present  time? 

How  are  vessels  built  and  owned  in  your  town ;  are  builders  and  masters  generally 
owners  in  the  vessels  which  they  build  and  sail  ? 

Could  you  build  vessels  at  the  present  time  in  competition  with  the  foreign  builder, 
providing  you  could  obtain  the  materials  free  of  duty  ? 

To . 


From  the  numerous  replies  received  the  committee  have  selected  the 
following,  as  giving  a  fair  representation  of  the  views  entertained  by 
the  representatives  of  the  important  interests  under  review : 

KITTERY,  MAINE,  December  4,  1869. 

DEAR  SIR  :  Yours  of  the  25th  ultimo  was  duly  received,  and  the  following  are  the 
answers  we  give  to  the  questions  you  propose  : 

Question.  What  is  the  present  condition  of  ship-building  at  your  town  as  compared 
with  the  period  from  1854  to  1860  ? 

Answer.  From  1854  to  1860,  as  for  many  years  previous,  ship-building  was  a  steady 
and  lucrative  business,  giving  employment  to  about  all  the  mechanics  on  the  river.  At 
present,  it  is  in  a  state  o'f  complete  stagnation. 

Question.  What  are  the  present  average  rates  of  wages  paid  to  first-class  mechanics 
on  ship-work  ? 

Answer.  Two  dollars  and  fifty  cents  per  day. 

Question.  What  are  the  average  rates  for  same  from  1854  to  1860  ? 

Answer.  One  dollar  seventy-five  cents  per  day. 

Question.  What  is  the  present  cost  per  ton  for  building  sail- vessels  and  steamers  t 
Cost  of  same  from  1854  to  1860  ? 

Answer.  The  present  cost  of  building  sail-vessels  ready  for  sea  is  about  seventy-five 
dollars  per  ton.  Steamers,  exclusive  of  machinery,  sixty-five  dollars  per  ton.  The 
cost  of  sail- vessels  from  1854  to  1860  was  about  fifty-eight  dollars  per  ton. 

Question.  What  was  the  cost  of  materials  for  each  ton  from  1854  to  1860  ? 

Answer.  About  forty -one  dollars  per  ton. 

Question.  What  is  the  cost  per  ton  for  the  same  at  the  present  time  ? 

Answer.  About  fifty-three  dollars  pei  ton. 

Question.  Amount  of  duties  on  materials  in  a  thousand-ton  ship  from  1854  to  1860  ; 
also  amount  of  same  at  the  present  time  ? 

Answer.  The  amount  of  duties  on  a  thousand-ton  ship  from  1854  to  1860  was  about 
one  thousand  dollars  ;  at  the  present  time  we  think  it  would  amount  to  from  seven  to 
eight  thousand  dollars. 

Question.  How  are  vessels  built  and  owned  in  your  town ;  are  the  builders  and 
masters  generally  owners  in  vessels  they  build  and  sail  ? 

Answer.  All  the  vessels  we  have  built  the  past  dozen  years,  have  been  owned  by  the 
builder,  master,  merchants,  and  mechanics,  in  pieces  varying  from  one  sixty-fourth  to 
one-eighth.  It  is  seldom  any  one  owns  over  one-eighth. 

Question.  Could  you  build  vessels  at  the  present  time  in  competition  with  the  foreign 
builder,  providing  you  could  obtain  the  materials  free  of  duty  ? 

Answer.  Aa  we  have  to  pay  one-third  of  the  amount  we  receive  for  tbo  hull  and 


196  NAVIGATION    INTERESTS. 

spars  of  vessels  for  la,bor,  we  could  not  compete  with  the  foreign  builder,  even  with 
that  materials  free  of  the  duty. 
Yours  truly, 

NEAL,  MATHEWS  &  BROOKS. 
Hon.  JOHN  LYNCH, 

Washington,  D.  C. 


EASTPORT,  December  1,  1869. 

DEAR  SIR  :  Your  favor  of  25th  ultimo  received,  and  contents  noted.  In  reply  to  your 
several  interrogatories,  I  will  reply  to  your  first,  viz,  What  is  the  present  condition 
of  ship-building  at  your  town,  as  compared  with  the  period  from  1854  to  1860  ? 

Answer.  Full  sixty-five  per  cent,  less  tonnage  built  by  me. 

2.  What  are  the  present  average  rates  of  wages  paid  to  first-class  mechanics  on 
ship  work  ? 

Answer.  Two  dollars  and  seventy-five  cents  per  day. 

3.  What  are  the  average  rates  of  same  from  1854  to  1860  ? 
Answer.  One  dollar  and  seventy-five  cents  per  day. 

4.  What  is  the  present  cost  per  ton  for  building  sail- vessels  ? 

Answer.  Sixty-two  dollars  per  ton  for  sail-vessels  at  present  time.  (Steamers  do  not 
build.) 

5.  Answer.  Cost  of  construction  of  vessels  from  1854  to  1860,  fifty  dollars  per  ton. 

6.  In  reply  to  your  inquiry  about  how  the  vessels  are  built  and  owned,  I  will  state  that 
associated  owners,  and  generally  masters,  are  interested. 

7.  In  reply  to  your  inquiry  whether  I  could  build  vessels  in  competition  with  foreign 
builders,  providing  I  could  obtain  the  material  free  of  duty,  I  will  state  that  I  could, 
providing  of  same  class  of  vessels. 

Very  truly  yours, 

CALEB  S.  HUSTON. 
Hon.  JOHN  LYNCH,  Chairman. 

CAPE  NEDDICK,  Name. 

SIR  :  Yours  of  the  25th  instant  is  received.  I  built  a  vessel  in  this  town  in  1854  for 
thirty-four  dollars  per  ton ;  paid  first-class  carpenters  two  dollars  per  day  ;  ship-timber, 
paid  nine  dollars  per  ton;  copper,  paid  twenty-one  cents  per  pound;  iron,  (English,) 
paid  sixty  dollars  per  ton. 

In  I860  timber  was  bought  for  fourteen  dollars  per  ton  ;  iron,  one  hundred  and  forty 
dollars  per  ton ;  copper,  forty-five  cents  per  pound  ;  employed  first-class  carpenters  at 
three  dollars  and  a  half  and  four  dollars  per  day. 

There  have  been  but  two  vessels  built  here  in  this  town  since  1860,  owing  to  the  high 
duty  on  material.  The  same  class  vessels  could  not  have  been  built  in  18GO  for  sixty- 
five  dollars  per  ton. 

From  the  Piscataqua  to  Monsum  Rivers  there  are  five  ship-building  towns  in  the 
county  of  York.  In  Kenuebunk,  in  1854,  there  were  seven  large  ships  built :  there 
were  two  built  in  Wells  the  same  year,  and  one  in  Cape  Neddick ;  two  large  ships  in 
the  town  of  Kittery,  in  1854.  All  the  above-named  towns  are  now  idle,  except  Ken- 
nebuiik,  where  there  is  one  ship  on  the  stocks.  Ship  merchants  build  and  repair  in 
British  dominions,  on  account  of  high  duty  on  material. 
Very  respectfully, 

JOHN  BREWSTER. 

Hon.  JOHN  LYNCH, 

Washington,  D.  C. 

P.  S.— If  it  had  not  been  for  what  work  there  was  done  in  the  navy  yard  at  Ports 
mouth,  I  do  not  know  what  the  ship  carpenters  would  have  done  this  fall. 


WISCASSET,  MAINE,  December  6,  1869. 

DEAR  SIR  :  As  chairman  of  Special  Committee  on  Navigation  Interests,  it  is  perhaps 
pertinent  for  you  to  have  all  and  any  facts  that  bear  unfavorably  on  the  interest  of 
navigation,  and,  without  further  preface,  would  bring  to  your  notice  one  of  the  special 
restraints. 

Our  ship  Richard  III  cleared  at  Wiscasset  28th  October  for  Charleston,  S.  C.,  haviug 
in  as  cargo  a  small  amount  of  hay  and  potatoes,  on  ship's  account,  consigned  to  order. 
It  had  bee-en  our  intention  to  send  the  ship  off  Charleston  Bar,  there  to  be  met  with 
letter  from  it  Charleston  merchant  by  pilot-boat  off  the  port,  either  to  proceed  south  or 
go  into  Charleston.  On  the  30th  October,  the  morning  on  which  she  sailed,  our  inform- 


NAVIGATION    INTERESTS.  197 

ation  was  such  that  we  dispatched  the  ship  direct  to  New  Orleans,  where  she  arrived 
oil  25th  November,  and  on  entering  at  customs  on  26th  November,  was  lined  twenty 
dollars  for  not  clearing  for  New  Orleans.  I  have  been  a  manager  of  ship  property  for 
twenty-five  years  ;  my  father,  for  twenty-five  yjcars  before  me. "  Free  from  illicit  trade 
or  evasion  of  proper  dues,  it  has  been  our  only  business,  and  we  ought  to  know  whether 
we  are  pursuing  right  or  not.  We  have  often  had  our  ships,  both  coastwise  and  for 
eign,  when  they  had  no  cargo  to  bind  them  to  enter  a  particular  port,  seek  such  ports 
as  circumstances  or  convenience  might  bring  them  to,  and  heretofore  no  intimation  of 
fine  or  restriction.  It  is  quite  new  to  us,  if  such  really  is  a  rule  or  law,  and,  if  of  late 
enactment,  it  calls  for  a  change. 

In  your  investigations  of  the  decay  of  the  once  great  American  navigation  interest, 
it  will  not  seem  strange  to  you  when  I  tell  you  that  our  own  interest  in  ten  shins,  in 
the  general  freighting  business,  has  got  reduced  to  two  ships,  or  that  we  lack  the  en 
ergy  of  former  days1.  We  are  as  ready  now  as  ever  to  bring  home  to  our  country 
the  pay  for  freighting  our  own  exports  and  imports,  as  well  as  do  the  freighting  busi 
ness  for  any  other  nation  that  wants  skillful,  enterprising,  courageous  men,  and  when 
we  can  figure  a  remuneration  will  be  on  hand. 

Apologizing  for  taking  up  so  much  of  your  time,  I  remain,  verv  respectfully,  yours, 

JOSEPH  TUCKER.  • 

Hon.  Jonx  LYNCH, 

Chairman  Committee  on  Ncivigation,  Washington. 


DAMARISCOTTA,  MAINE,  December  1,  1869. 

DEAR  SIR  :  Tour  valued  favor  of  the  25th  ultimo  came  to  hand  by  due  course  of  mail, 
and  contents  noted. 

In  reply,  will  make  answer  to  the  inquiries  as  best  I  can  from  a  hasty  examination  of 
records  and  my  own  personal  knowledge. 

1.  Ship  building  has  fallen  off  a^tlris  place  since  1854  about   nine-tenths,  as  you 
will  notice  by  list  inclosed  of  vessels  recorded  at  our  custom-house  in  that  year,  show 
ing  over  ten  thousand  tons,  and  this  present  year  only  about  seven  hundred  tons,  being 
nearly  a  total  suspension  of  the  business. 

2.  Average  wages,  first-class  workmen,  this  year,  about  $2  50  per  day. 

3.  From  1854  to  1860  a  wide  range  in  wages  was  given;  say  average  for  1854  was 
$3  per  day ;  1857,  $1  50  and  $1  75,  advancing  since  1857  to  the  present  rates. 

4.  The  cost  per  ton  varies  on  larger  and  smaller  sized  vessels ;  say,  a  bark  of  six 
hundred  tons,  two  decks,  will  cost  more  per  ton  than  a  ship  of  one  thousand  tons,  same 
materials,  as  the  larger  the  vessel  the  less  cost  per  ton ;  think  average  first-class  this 
year  about  $75  per  ton,  fitted  for  sea.    Soon  after  the  close  of  the  war,  some  cost  as  high 
as  $UO  and  $100  per  ton.    Steamers  we  have  never  built  here. 

5.  A  ship  of  seven  hundred  and  fifty  tons  cost  here  in  1854  about  $65  per  ton,  and  in 
1857  one  of  twelve  hundred  tons  cost  about  $52  per  ton ;  since  1857  to  date  prices  in 
creased. 

6.  Cost  of  material  per  ton,  cannot  state  from  1854  to  1860. 

7.  Present  cost  of  material  twenty-five  per  cent,  more  than  from  1854  to  1860. 

8.  Cannot  state  amount  of  duties  on  material. 

9.  Builders  and  master's  are  the  owners  ;  more  so  at  present  than  formerly,  when  a 
profit  in  manufacturing  was  realized.     The  outright  sale  of  a  vessel  now  from  the 
builder  is  a  very  rare  occurrence,  and  no  man  can  with  any  certainty  build  to  sell  and 
realize  his  money  back  again,  at  the  high  cost.     Running  the  chances  in  sailing  them 
is  the  only  inducement  to  try  and  get  a  small  return  ;  take  the  risk,  and  get  about  the 
insurance. 

10.  Have  no  doubt,  could  material  entering  into  the  building  of  vessels  be  free  of 
duty,  we  could  compete  with  any  nation  in  the  world,  and  no  one  thing  can  ever  help 
us  more  as  a  ship-building  community. 

Hoping  the  above  may  meet  the  most  of  your  inquiries,  I  am,  very  truly  yours, 

JOSEPH  DAY. 
Hon.  JOHN  LYNCH, 

Washington,  D.  C. 

Under  date  of  December  28,  Mr.  Day  writes  additional  facts,  of  which 
the  chief  portions  are  here  given: 

In  the  year  1854 1  bought  into  a  ship  by  previous  agreement  of  about  seven  hundred 
Mid  fifty  tons,  at  the  bills,  costing,  ready  for  sea,  some  $65  per  ton,  being  the  most  expen 
sive  year  up  to  that  time  known  here  in  building,  causing  many  failures  in  our  State 
among  builders.  Freighting  declined,  and  hardly  fifty  per  cent,  of  cost  could  be 
realized  to  sell  a  vessel  that  fall ;  it  seemed  the  beginning  of  what  has  since  proved 
a  total  failure  in  tjiat  branch  of  business. 


198  NAVIGATION   INTERESTS. 

In  the  year  1857  built  the  ship  Success,  of  about  one  thousand  two  hundred  tons, 
a  thorough  white  oak  vessel,  costing,  when  ready  for  sea,  about  $52  per  ton,  being  a 
very  cheap  year  to  build,  as  you  will  notice  in  previous  letters,  as  to  workmen's  wages; 
other  things  entering  into  construction  being  in  about  the  same  proportion.  Still, 
business  was  very  dull  when  ready  for  sea. 

In  the  year  1866  built  a  bark  of  about  seven  hundred  tons,  a  first-class  white  oak  ves 
sel  in  every  respect,  costing,  when  fitted  for  service,  about  $85  per  ton.  This  also  was  a 
very  expensive  year,  and  in  the  three  vessels  named,  together,  since  they  began  to 
run,  (and  they  have  been  managed  by  thorough  merchants,  and  good  masters  as  will 
average, )  after  deducting  expenses,  insurances,  wear  and  tear,  &c.,  the  owners  all  would 
have  been  thousands  of  dollars  better  off  to-day  had  these  investments  never  existed. 

The  first  cause  of  decline,  in  a  measure,  can  be  traced  to  the  uncertainty  hanging 
over  our  national  affairs  between  the  North  and  the  South,  and  the  Jack  of  confidence  in 
the  country  as  to  results  of  the  impending  crisis.  Our  senators  and  representatives  in 
Congress  were  at  a  loss  how  to  advise,  throwing,  doubt  and  uncertainty  upon  all  opera 
tions.  After  the  conflict  began  in  earnest,  privateers,  English  influences,  and  other 
complications,  finished  what  was  left  of  hope  in  the  interest  of  our  commerce,  and  I 
truly  believe  no  class  of  industry  has  had  so  much  to  contend  with  throughout  this 
long  dearth  of  some  sixteen  years,  with  so  little  encouragement  from  any  source,  as 
the  ship-owning  and  building  class.  Sailing  expenses,  including  insurances  of  the 
various  kinds  ot  risks,  &c.,  have  been  so  much  above  what  the  rates  of  freights  would 
warrant,  these  items,  in  connection  with  the  high  costs  of  construction,  with  other 
causes  before  cited,  have  caused  the  whole  life  of  navigation  in  this  country  to  be 
crushed  out,  and  it  now  remains  to  be  seen  what  can  be  done  to  repair  the  great  waste 
and  depreciation  of  our  commerce.  Other  nations  have  the  start  of  us  in  every  way 
in  amount  of  tonnage  and  in  doing  the  carrying  trade  of  the  world. 

Our  government  should  consider  well  the  importance  of  its  situation  as  regards  an 
efficient  merchant  marine  when  it  has  realized  the  effects  of  such  an  arm  as  has  here 
tofore  existed  in  our  country. 

It  will  demand  the  greatest  encouragement  ev£n  to  get  the  breath  of  life  in  it;  but 
when  once  more  firmly  established,  (having  the  original  first  cause  of  decline  now 
firmly  settled,)  it  will,  as  ever  previous  to  the  years  above  mentioned,  take  care  of  itself 
as  the  one  most  important  branch  of  our  national  wealth  and  glory. 

Think  no  trade  has  called  so  littlo  for  aid  or  protection  at  any  time  from  the  govern 
ment  as  the  ship-building  and  ship-owning  interest  previous  to  the  present  emergency. 


BOSTOX,  November  29,  1869. 

DEAR  SIR  :  We  beg  leave  to  acknowledge  receipt  of  your  esteemed  favor,  25th  instant, 
and  are  glad  to  have  the  opportunity  of  presenting  our  vieVs,  and  we  earnestly  solicit 
your  considerate  attention.  There  are  but  two  causes  of  the  decline  and  depressed 
condition  of  our  commerce,  viz: 

First.  The  destruction  of  our  vessels  by  the  rebel  cruisers  during  the  war,  and  the 
sale  of  a  large  number  to  foreign  merchants,  when  the  premium  on  the  gold  enabled  our 
ship-owners  to  realize  a  handsome  profit. 

Second.  The  increased  cost  of  building,  and  of  manning,  Victualing  and  furnishing 
the  vessels.  There  is  such  a  difference  that  we  cannot  successfully  compete  with  other 
nations  either  in  building  or  sailing  our  vessels.  Our  own  ports  are  full  of  foreigu 
ships.  We  venture  the  assertion  that  the  total  commerce  of  the  country  (inland  navi 
gation  excluded)  has  not  paid  five  per  cent,  per  annum  since  the  war. 

These,  in  our  opinion,  are  the  causes  of  the  decline  ;  and  the  measures  that  should  be 
adopted  by  Congress  to  revive  these  interests  are  quite'  obvious  to  us,  aud  we  do  not 
see  as  any  difference  of  opinion  can  exist  among  ship-owners. 

1.  A  remission  of  the  duties  upon  all  foreign  materials  used  in  the  construction  of 
ships,  whether  for  new  vessels  or  repair,  and  when  used  for  that  purpose. 

This  would  enable  us  to  build  or  repair  ships  as  low  as  any  other  nation.  Iron  ships 
and  steamers  are  built  in  large  numbers  in  England,  and  are  rapidly  taking  the  place 
of  wooden  vessels.  They  now  command  higher  rates  of  freight  in  nearly  all  the  ports 
of  the  world,  and  especially  for  carrying  grain  and  the  products  of  the  Indies.  This 
discrimination  in  the  duty  upon  iron  would  enable  us  to  build  iron  vessels  at  a  cost 
not  greatly  in  excess  of  what  can  be  done  in  Europe,  whereas  now  the  duty  is  equal  to 
prohibition. 

2.  In  this  connection,  we  would  suggest  a  law  granting  American  registers  to  iron 
steamers  aud  sailing  vessels  when  built  in  foreign  ports,  and  by  the  payment  of  a  tax, 
say  five  to  ten  per  cent,  on  the  cost ;  and  for  this  reason,  that  even  with  a  remission 
of  the  duty,  we  have  not  the  facilities  for  building  a  large  number,  and  our  experience 
is  limited.     Such  a  law  would  benefit  our  commerce  for  the  present,  and  until  we  have 
had  more  practical  experience  in  constructing  iron  vessels. 

3.  A  drawback  on  duties  levied  upon  stores  and  goods  when  purchased  for  con- 


NAVIGATION    INTERESTS.  199 

sumption  on  board  said  vessel,  and  when  said  vessel  is  bound  to  any  foreign  port.  And 
we  think  it  would  be  well  to  include  such  distant  ports  in  our  own  country  as  San 
Francisco.  This  Ls  a  law  ill  England.  The  goods  have  to  be  purchased  in  bond,  and 
do  not  include  merchandise  on  which  duty  has  already  been  paid. 

4.  Repeal  of  the  tax  of  thirty  dollars  per  ton,  payable  every  year. 

5.  The  repeal  of  some  of  the  laws  relating  to  American  seamen.     These  laws,  as  you 
are  aware,  were  enacted  during  the  infancy  of  the  republic,  and  when  our  commerce 
was  but  limited.    They  are  entirely  impracticable  in  the  existing  state  of  things.     A 
very  large  proportion  of  the  seamen  now  shipped  on  board  of  American  vessels  are 
foreigners,  and  the  law  requiring  or  authorizing  our  consuls  to  compel  the  payment  ot 
three  mouths'  extra  pay  to  crews  in  certain  cases,  is  greatly  to  the  disadvantage  of  the 
ship-owner,  and  does  not  meet  the  expectation  of  the  law.    This  law  was  passed,  as  we 
understand,  to  provide  for  the  support  and  payment  of  the  passage  home  of  any  Ameri 
can  seaman  who  had  been  improperly  treated  on  the  voyage,  or  who  should  be  unable 
to  discharge  his  duties  by  reason  of  disability  or  sickness.    The  class  of  seamen  now 
employed  are  very  different  in  these  times,  and  are  quite  unscrupulous,  often  incom 
petent,  and  nearly  all  foreigners.    The  consuls  are  sometimes  only  too  ready  to  accede 
to  their  demands,  and  wo  have  suffered  to  the  extent  of  several  thousand  dollars  the 
past  few  years  by  the  payment  of  three  months'  extra  wages,  often  advanced  to  a  whole 
crew  of  twenty  men,  and  that  in  gold,  when  the  articles  provided  especially  for  theii 
wages  in  United  States  currency.     We  protest  against  such  conduct  on  the  part  of  our 
consuls  abroad. 

It  is  true*  and  we  know  of  cases  where  the  seamen  have  actually  feigned  sickness  for 
the  purpose  of  robbing  the  owners  of  three  months'  extra  pay,  and  they  have  obtained 
it.  We  have  had  proof  in  several  instances  the  crews  of  our  own  vessels  have  formed 
a  conspiracy  to  complain  to  the  consul  on"  arrival  of  bad  treatment,  and  thus  obtain 
the  extra  pay,  and  they  have  only  been  too  successful. 

We  have  lately  had  a  case  where  the  master  shipped  four  seamen  in  a  foreign  port, 
and  the  consul,  by  accident,  neglected  to  give  him  the  articles  for  the  four  men.  On  the 
arrival  of  the  ship  at  Havre,  the  consul  compelled  the  payment  of  three  months'  extra 
pay,  though  the  master  produced  the  account  of  the  consul  at  the  port  of. departure, 
showing  that  the  men  in  question  were  duly  shipped,  and  in  conformity  with  law.  But 
as  he  did  not  have  the  articles  the  law  was  sufficient  to  compel  the  payment. 

These  laws  should  certainly  be  changed,  so  as  to  meet  the  necessity  of  the  times,  and 
you  will  be  entitled  to  the  hearty  thanks  of  every  ship-owner  in  the  United  States,  if 
you  will  but  give  this  matter  your  attention  and  consideration. 

We  have  thus  at  some  length  given  our  views  upon  the  questions  you  name.  Wo  are 
happy  to  be  able  to  present  them  to  you,  assured,  as  we  are,  that  you  will  give  them 
that  consideration  which  their  importance  demands.  We  hope  Congress  will  realize 
the  necessity  of  doing  something  early  in  the  session  for  the  relief  of  our  ship-owners. 
The  building  of  ships  is  now  nearly  suspended,  awaiting  the  action  of  Congress.  The 
argument  that  if  we  are  enabled  to  build  vessels  more  cheaply,  that  it  will  depreciate  the 
value  of  what  vessels  we  now  have,  is  too  shallow  to  require  any  comment.  As  large 
ship-owners,  we  prefer  depreciation,  if  such  would  be  the  result,  to  utter  annihilation, 
which  will  be  the  case  if  some  relief  is  not  granted. 

These  views  we  believe  to  bo  entirely  sound. 
We  have  the  honor  to  remain,  very  respectfully,  your  obedient  servants, 

THAYER  &  LINCOLN. 

Hon.  JOHN  LYNCH, 

Chairman  Committee  on  Navigation  Interests. 


Memorial. 

To  the  honorable  the  Senate  and  House  of  Representatives  in  Congress  assembled : 

The  memorial  of  the  undersigned,  builders,  owners,  and  shippers,  engaged  in  com 
merce,  respectfully  represents: 

That  the  commerce  of  the  country  is  prostrated;  that  the  foreign  carrying  trade  is 
seeking  other  than  American  bottoms,  and  that  the  skilled  labor  in  this  branch  of  in 
dustry  has  to  look  for  employment  from  other  sources. 

The  reasons  for  this  state  of  things  will  be  found  in  the  fact  that  labor  and  materials 
in  this  country  are  higher  than  in  most  commercial  countries.  The  labor,  because  the 
necessities  of  the  government  have  made  large  taxation  necessary,  and  the  materials  on 
account  of  a  high  tariff.  The  commerce  of  any  one  nation  having  to  compete  with  that 
of  the  world  in  all  the  great  markets  of  production,  it  follows  that  our  government 
must  afford  some  relief,  or  else  ours  will  continue  to  languish  and  diminish. 

They  therefore  respectfully  petition  that  your  honorable  bodies  would  pass  a  law  re 
mitting  the  duties  upon  articles  used  in  the  construction  of  vessels;  and,  as  in  duty 
bound,  will  ever  pray. 


200  NAVIGATION    INTERESTS. 

BOSTON,  November  29,  1809. 

MY  DEAR  SIR  :  In  answer  to  your  favor  of  20th  I  respectfully  submit  a  short  memorial 
which  I  drew  up  for  circulation  some  mouths  ago,  and  which  I  believe  covers  the  gist  of 
the  whole  matter. 

After  the  breaking  out  of  the  rebellion,  and  when  several  confederate  pirates  were 
afloat,  the  government  gave  ship-owners  to  understand  that  they  could  not  protect 
their  interests  upon  the  ocean  or  in  distant  seas  because  they  required  all  the  available 
vessels  for  blockade  service. 

This  led  to  a  transfer,  or  partial  transfer,  of  many  vessels  to  a  foreign  flag. 

When  peace  was  conquered  an  attempt  was  made  through  Congress  to  restore  the 
vessels  thus  transferred  to  their  own  flag,  and  which  was  refused. 

The  effect  of  that  refusal  was  to  keep  quite  a  large  tonnage  of  American-built  and 
American-owned  vessels  under  a  foreign  flag,  and  in  fact  making  it  a  necessity  in  the 
prosecution  of  their  business  by  American  merchants  and  growing  out  of  their  owner 
ship  to  sustain  a  foreign  flag. 

I  was  never  satisfied  myself  with  the  debate  or  the  decision  of  Congress  upon  this 
question.  I  know,  from  personal  observation,  that  some  of  the  very  best  ship-masters 
felt  unwilling  to  continue  during  the  rebellion  in  ships  under  the  American  flag,  because 
the  government  did  not  propose  in  the  first  instance  to  give  them  proper  protection,  for 
the  reasons  herein  recited;  and  secondly,  they  were  liable  to  have  their  vessels  burned 
under  them,  and  they  landed  penniless  on  some  distant  shore,  to  find  their  way  home  as 
opportunity  might  offer.  % 

These  several  reasons  have  reduced  American  tonnage,  and  have  prevented  American 
ship-builders  from  competing  with  those  of  other  nations. 

There  has  been  a  strong  effort  upon  the  part  of  British  builders  to  magnify  vessels 
built  of  iron  over  those  built  of  wood.  True  to  their  instincts,  English  insurers  have 
done  all  in  their  power  to  keep  up  the  delusion. 

England  is  a  country  of  cheap  iron.    We  are  a  country  of  cheap  and  good  wood. 

My  own  opinion,  distinct  from  one  of  prejudice,  is  in  favor  of  wood.  If  our  people 
ivould  study  these  questions  in  the  light  of  patriotism  they  could  effectually,  with  the 
proper  aid  <of  government,  restpre  the  commerce  of  the  country  to  our  own  flag,  and. 
thus  aid  the  construction  of  magnificent  wooden  ships. 

I  am,  with  great  respect,  your  very  obedient  servant, 

GEO.  B.  UPTON. 

Hon.  JOHN  LYNCH,  Chairman,  $c. 


BOSTON,  December  22,  1869. 

MY  DEAR  SIR  :  I  am  this  morning  in  receipt  of  your  kind  favor  of  the  18th.  I  am  in 
favor  of  wooden  ships  for  foreign  commerce,  for  these  simple  reasons  : 

First.  In  case  of  stranding  or  severe  wrecking  at  sea,  tbay  are  much  more  easily  re 
paired.  Of  all  the  ports  of  the  world,  in  South  America,  the  East  Indies,  and  China, 
tew  or  none  have  the  necessary  tools  or  workmen  for  an  extensive  repair  of  iron  vessels 
while  there  is  hardly  one  that  cannot  repair  a  wooden  ship. 

Second.  A  wooden  ship,  under  the  same  circumstances,  will  bring  or  carry  her  cargo 
better  than  an  iron  one.  Wood  is  a  good  uon-couductor ;  iron  condenses.  The  dam 
age  by  sweat  is  very  great,  and  is  one,  moreover,  that  insurers  do  not  cover.  Iron  ships, 
for  the  reason  named,  are  more  apt  to  sweat  the  cargo  than  those  built  of  wood. 

Third.  Wooden  ships  can  be  more  safely  navigated  than  those  built  of  iron.  I  am 
uware  of  the  improvements  in  correcting  the  compass,  still  the  fact  exists  and  cannot 
be  gainsaid,  that  in  this  respect  wood  has  an  advantage  over  iron. 

Fourth.  The  United  States  have  the  best  and  cheapest  wood  in  the  world  for  ship 
building.  At  a  gold  basis,  and  with  a  reasonable  concession  of  duties  upon  articles 
which  enter  into  the  fitting  and  sailing,  we  can  build  wooden  ships  of  the  best  class  at 
about  thirty  per  cent,  less  rates  than  the  Clyde  can  build  those  of  iron. 

For  these  simple  reasons,  I  have  always  maintained  that  it  was  for  our  interest  to 
build  and  carry  on  our  business  in  wooden  ships.  They  are  tools  of  trade.  As  a  ques 
tion  of  political  economy,  the  cheapest  tool  which  does  the  work  well  is  the  true  one  lo 
procure,  and  although  I  am  in  favor  of  having  and  of  giving  encouragement  to  skilled 
workmen  in  all  branches  of  industry,  iron  as  well  as  wood,  I  do  not  think  the  time  has 
arrived  when  we  can  economically  use  iron  either  alone  or  as  a  composite  in  ship 
building. 

I  am,  with  great  respect,  your  most  obedient  servant, 

GEO.  B.  UPTON. 

Hon.  JOHN  LYNCH,  Chairman,  #c. 

BOSTON,  December  3,  1869. 

DEAR  SIR  :  In  reply  to  your  request  in  letter  of  the  25th  ultimo  we  think  the  govern 
ment  wrong  in  not  taking  some  fair  and  liberal  measures  immediately  after  the  war  for 


NAVIGATION   INTERESTS.  201 

the  increase  of  our  mercantile  marine.    At  this  lato  date  wo  can  see  no  other  strictly 
safe  and  sure  course  to  re-establish  our  commerce,  viz : 

1.  Than  by  granting  the  privilege  of  purchasing  tonnage  in  any  part  of  the  world; 
that  of  foreign  construction  bearing  an  equitable  duty  on  cost  when  taking  the  flag. 

2.  A  drawback  on  all  materials  used  in  construction  of  vessels. 

3.  Outfits  for  vessels  taken  from  bonded  stores  exempted  from  duty. 

¥ours,  very  respectfully, 

THOMAS  B.  WALES  &  CO. 
Hon.  JOHN  LYNCH, 

Chairman  Committee  on  Navigation  Interests. 


BOSTON,  December  6, 18G9. 

SIR  :  When  I  received  your  favor  of  the  25th  ultimo  I  was  not  in  condition  to  attempt 
an  answer.  Since  then  I  have  seen  a  copy  of  a  long  article  by  the  Hon.  E.  H.  Derby, 
of  this  city,  which  is  to  appear  in  the  coming  Atlantic  Magazine ;  also,  a  pamphlet  by 
Captain  John  Codman,  addressed  to  you ;  and  also  the  report  of  the  commissioner  of 
the  New  York  Chamber  of  Commerce,  the  writer  of  which,Mr.  A.A.  Low,  is  well  qualified 
to  speak  on  the  subject.  I  concur  almost  without  reserve  in  these  several  papers,  and  I 
think  they  embody  the  views  of  merchants.  Only  one  point  of  peculiar  interest  to 
me  has  not  been  touched  upon,  and  to  this  I  propose  to  confine  my  remarks.  It  had 
much  to  do  with  the  decadence  of  American  commerce. 

It  is  this:  the  government  by  force  of  circumstances  failed  to  give  protection  to  our 
commerce.  In  a  great  emergency  like  that  which  came  so  suddenly  upon  us  in  1861 
it  was  quite  natural,  not  to  say  necessary,  for  the  government  to  turn  its  attention 
exclusively  to  blockading  the  ports  of  the  enemy,  and  leave  the  shipping  to  take  care 
of  itself.  If  it  could  have  turned  its  attention  to  protecting  our  foreign  commerce 
it  would  have  been  obliged  to  send  out  vessels  wholly  unfit  for  the  purpose.  The 
government  had  not  then  and  has  not  now  any  efficient  cruising  ships.  The  class  of 
vessels  built  during  the  latter  part  of  the  war  (of  the  type  of  the  Madawaska,  Warn- 
panoag,  &c.,  known  as  the  "canoe  ships,"  intended  for  great  speed)  are  perfectly  use 
less  as  cruisers  to  go  in  search  of  Alabamas ;  millions  of  dollars  were  wasted  in  their 
construction,  and  millions  may  be  wasted  in  keeping  them  in  order  to  do  nothing  useful. 
I  do  not  hesitate  to  say  that  it  would  be  good  economy  to  burn  every  one  of  them 
rather  than  to  finish,  repair,  and  employ  them.  I  think  this  sweeping  statement  will 
be  found  confirmed  by  a  report  of  distinguished  naval  officers  and  an  engineer,  made 
by  order  of  the  Secretary  of  the  Navy,  and  probably  accessible  to  your  committee. 
There  are  a  few,  very  few,  foir-sailiug,  fair-steaming,  and  fairly  economical  ships  in  the 
navy,  as  the  Hartford  and  Brooklyn,  and  some  that  I  cannot  identify  under  their  new 
names.  There  is  an  intermediate  class,  like  the  Ticonderoga,  Monongahela,  Lacka- 
wanna,  and  Detroit,  mounting  five  heavy  guns,  and  of  thirteen  hundred  to  fifteen 
hundred  tons,  old  measurement,  which  came  much  nearer  to  being  useful  cruising 
ships  than  the  "canoe  ships;"  but  by  reason  of  an  incompetent  jury-rig,  they  are,  or 
were,  wholly  unfit  to  make  long  cruises  without  frequent  coaling. 

The  large  class  of  vessels,  like  Colorado,  Minnesota,  Franklin,  and  Wabash,  mount 
ing  forty  guns,  and  averaging  about  thirty-six  hundred  tons,  old  measurement,  are  very 
fine  vessels  for  flag-ships  on  foreign  stations  in  time  of  peace,  but  they  are  too  large  and 
too  expensive  for  cruising  ships,  and  they  are  wholly  unfit  to  contend  with  iron-clads. 
As  an  illustration  of  the  want  of  economy  sometimes  practiced,  I  would  remark  that  I 
have  recently  seen  under  repairs  at  this  station  a  ship  built  at  Philadelphia  in  1864-'5 — I 
believe  either  the  Shenandoah  or  Ticonderoga.  She  lias  been  almost  entirely  rebuilt, 
and  it  would  be  interesting  and  instructive  to  know  how  much  has  been  expended  on 
her.  I  think  the  most  cursory  observer  who  saw  her  plank  oil"  would  say  that  it  would 
have  been  good  economy  to  take  her  to  sea  and  sink  her  in  preference  to  repairing 
her. 

With  this  sketch  of  the  inefficiency  of  our  navy  in  ships  adapted  to  keeping  the  sea 
for  any  considerable  time,  mostly  under  canvas,  for  the  protection  of  our  commerce 
and  for  hitting  the  first  hard  blows  at  the  commerce  of  the*  enemy,  it  is  quite  apparent 
that  at  the  beginning  of  the  war  our  government  could  not  have  effectually  protected 
our  foreign  commerce,  and  could  not  to-day  should  a  -war  occur.  One  great  cause, 
therefore,  for  the  decadence  of  American  commerce  on  the  ocean  was  the  want  of  due 
protection.  Another  prominent  cause  was  the  want  of  due  encouragement  to  private 
enterprise  to  fit  out  vessels  to  capture  the  enemy's  cruisers.  Had  any  sufficient  induce 
ment  been  held  out,  regularly  commissioned  vessels  would  have  been  fitted  out  by 
private  enterprise. 

The  remedy  for  this  short  list  of  evils  is  very  simple.  It  is  to  construct  a  fleet  of 
fast-sailing,  efficient  screw  steamers,  with  full  supply  of  canvas,  such  as  we  see  under 
all  but  our  own  flag,  crossing  the  ocean  in  nine  and  ten  days — ships  with  light  arma 
ments,  not  fit  to  encounter  iron-clads  or  old-style  fighting  ships,  or  to  batter  forts,  but 


202  NAVIGATION    INTERESTS. 

ships  well  adapted  to  catch  the  commercial  ships  of  an  enemy,  and  to  escape  from  a 
superior  force  ;  and  for  government  to  grant  subsidies  to  those  who  should  build  mail 
packets  fit  for  conversion  for  these  purposes. 

Such  ships  would  afford  valuable  training  schools  for  seamen,  and  to  this  end  everv 

encouragement  should  be  given  to  young  men  to  enlist  on  board  of  them.    They  would 

afford  excellent  training  schools  for  young  officers,  and  in  time  of  peace  as  well  as  in 

time  of  war,  would  prove  very  valuable  auxiliaries  to  promote  and  protect  commerce. 

I  am,  very  respectfully,  your  obedient  servant, 

R.  B.  FORBES. 
Hon.  JOHN  LYNCH, 

Chairman,  #c.,  Washington,  D.  C. 


BOSTON,  December  20,  18G9. 

MY  DEAR  SIR  :  I  am  in  receipt  of  your  note  of  the  25th  ultimo  asking  my  opinion 
on  the  "  causes  of  the  decline  and  present  depressed  condition  of  the  ship-building  and 
general  navigation  interests  of  the  country,  and  the  means  of  legislation  necessary  to 
revive  those  interests." 

My  business  engagements  have  been  such  as  to  prevent  me  from  making  an  earlier 
reply,  and  I  must  now  give  you  my  views  briefly.  But  little,  however,  need  be  said,  as 

T    J-l,  *     ,1_     *i Ml    1 /V*        • _|_     J.  _     . * J.1 T     •  _  J_  .  .     .   J?      _  -        .     _  ^V*      •_  /»  i  1  t 


of 
them,  however,  will  appear  quite  plain. 

Before  the  Avar  of  the  rebellion,  in  the  course  of  years,  our  commercial  enterprise  had 
placed  our  country  in  the  front  rank  among  nations.  The  amount  of  tonnage  of  our 
sea-going  vessels  was  more  than  one-seventh  part  greater  than  that  of  England  at  the 
beginning  of  the  year  1861,  and  rapidly  increasing.  The  demands  of  foreign  commerce 
had  directed  attention  to  the  business  of  ship-building,  and  this  branch  of  industry  had 
grown  up  to  great  importance,  engaging  the  capital,  skill,  and  energies  of  a  large 
number  of  our  citizens,  and  resulting  in  securing  to  our  ships  a  reputation  before  all 
others  in  the  world  for  beauty  and  speed.  When  the  war  of  the  rebellion  broke  out 
our  government  was  not  only  unprepared  to  protect  her  commerce  abroad,  but  was, 
for  the  *ime  at  least,  mainly  dependent  upon  the  building  establishments  which  had 
grown  up  under  private  hands  for  those  ships  which  were  needed  to  enforce  the  block 
ade  of  the  rebel  ports  and  meet  the  attacks  of  their  armed  vessels ;  while  the  rebels,  with 
the  substantial  aid  and  comfort  given  by  our  foreign  rivals,  were  enabled  to  sweep 
the  ocean  nearly  without  hinderance.  No  vessel  was  safe  but  under  a  foreign  flag. 
Under  this  state  of  things,  what  with  the  capture  and  destruction  of  many  of  our  ves 
sels  by  the  "  confederate  allies,"  and  the  natural  decay  and  loss,  (amounting  to  about 
ten  per  cent,  annually,)  the  decline  of  our  navigation  interests  such  as  we  have  expe 
rienced  was  inevitable ;  and  it  would  take  years  of  prosperity,  under  the  most  favorable 
circumstances,  for  us  to  regain  the  position  which  we  thus  lost.  But  our  circumstances 
are  not  favorable. 

The  wants  of  the  government  during  the  recent  war  had  to  be  met  by  a  system  of 
taxation  depressing  to  every  branch  of  business,  more  or  less,  but  especially  heavy  upon 
that  which  we  are  now  considering.  It  is  not  necessary  to  specify  the  particulars.  The 
builder  of  a  ship  must  now  pay  very  heavy  duties  and  taxes  upon  every  article  used 
in  and  upon  it.  The  purchaser  and  owner  will  pay  about  seventy  per  cent,  upon  her 
outfit,  and  thirty  cents  per  ton  annually  for  a  license.  No  hopes  can  be  entertained  of 
a  revival  of  these  interests  under  such  influences.  The  disabilities  of  our  present  posi 
tion  must  be  removed  by  action  of  the  national  government. 

England  in  1853,  and  France  in  1856,  saw  the  necessity  for  doing  something  for  the 
encouragement  of  navigation  among  their  citizens.  They  saw  the  United  States  taking 
the  lead  in  commercial  affairs,  and  about  to  do  the  greater  part  of  the  carrying  trade 
of  the  world.  England  at  once  took  off  all  duties  upon  everything  belonging  to  the 
building  of  a  ship,  and  on  all  outfits  taken  out  of  bond  at  the  time.  Ship-building 
was  then  in  as  depressed  a  condition  there  as  it  now  is  with  us.  At  the  time  when  her 
mechanics  struck  for  higher  wages,  she  passed  the  neutral  law,  by  which  any  one  of 
her  citizens  could  build  a  ship  wherever  he  might  choose,  and  by  paying  one  shilling 
per  ton,  could  procure  her  registry  precisely  as  if  she  had  been  built  at  home.  France 
passed  a  similar  law.  In  fact,  we  are  the  only  maritime  nation  that  has  not  done  the 
same.  England,  moreover,  went  further  thaii  this,  and  enacted  a  law  whereby  a  for 
eigner  (an  American  for  instance)  might  take  charge  of  an  English  ship  without  deny 
ing  allegiance  to  his  own  country,  and,  if  necessity  required,  he  might  call  on  either 
country  for  protection  of  his  rights  with  reference  to  it.  The  mercantile  marine  of  a 
country  is  one  of  the  greatest  elements  of  its  strength.  No  nation  can  be  really  great 
or  strong  without  it.  It  seems  to  me  that  on  national  grounds,  as  well  as  on  the  plain- 


NAVIGATION   INTERESTS.  203 

est  principles  of  economy,  that  our  government  should  take  especial  care  of  these 
interests,  on  which  her  standing  among  the  nations  so  materially  depends. 

The  course  necessary  to  be  pursued  seems  to  mo  plainly  indicated  in  the  policy 
which  our  great  rival  has  pursued  so  successfully. 

I  would  recommend  in  the  interests  of  the  ship-builder,  the  merchant,  and  the  whole 
country,  the  passage  of  a  law  remitting  all  duties  and  taxes  on  whatever  enters  into 
the  construction  or  outfit  of  vessels ;  the  enactment  of  such  measures  as  will  allow 
one  of  our  citizens  to  build,  buy,  or  equip,  in  any  part  of  the  world,  any  vessel  what 
ever  to  be  used  in  legitimate  commerce,  and  to  take  out  an  American  register  for  the 
same  by  payment  of  some  specific  tax  upon  her  cost  or  tonnage,  stiy  twenty-five  cents 
per  ton.  This  would  create  a  competition,  not  however  specially  injurious  \o  any  of 
our  interests,  but  resulting  in  the  general  good.  The  skill,  energy,  and  greater  effi 
ciency  of  our  mechanics  would  be  more  than  an  oifset  to  the  cheap  labor,  cheap  iron, 
and  cheap  coal  of  England.  We  should  soon  be  building  ships  for  the  world,  as  wo 
did  from  1846  to  1859.  I  have  myself  built  for  England,  France,  Germany,  Peru,  and 
Chili.  England  has  taken  our  place  now.  Shall  she  keep  it? 

Next  in  the  interests  of  our  commerce,  (as  I  have  before  had  occasion  to  state  to 
another  department  of  the  government,)  I  should  recommend  to  Congress  such  enact 
ments  as  shall  give  liberty  of  a  free  exchange  of  all  productions  and  commodities  in 
the  shape  of  raw  materials.  The  restrictions  placed  upon  a  free  trade  should  be,  as  far 
as  possible  and  as  soon  as  possible,  removed.  In  a  moderately  fair  field  wo  have  no 
cause  to  fear  any  rivals.  American  ship-masters  and  officers  are,  as  a  class,  superior  to 
all  others,  and  so  generally  acknowledged  to  be  such  that,  if  there  is  a  freight  to  bo 
had,  the  American  will  command  it  in  preference  to  others. 

Another  recommendation  I  would  make  with  regard  to  our  steam  navigation:  This 
is  a  branch  of  our  marine  of  great  and  increasing  importance,  and  should  receive  some 
special  encouragement.  A  subsidy  law  for  United  States  mail  steamers,  so  liberal  in 
its  provisions  as  to  secure  the  services  of  our  own  citizens  in  ,the  carrying  of  foreign 
mails,  is  very  desirable. 

I  have  thus  hastily  given  my  views  upon  the  subject  presented.  So  confident  am  I 
of  their  correctness  that,  if  I  myself  were  the  United  States  government,  and  my 
pocket  the  treasury,  I  should  not  hesitate  immediately  to  adopt  all  the  provisions 
which  I  have  recommended. 

I  am,  sir.  most  truly  yours, 

ISAAC  TAYLOR. 

Hon.  JOHN  LYNCH, 

Chairman  of  Committee,  Washington,  D.  C. 


The  following  is  from  a  letter  of  Donald  McKay,  ship-builder,  of  East 
Boston : 

***  *  *  *** 

I  annex  a  list  of  duties  (in  gold)  upon  various  articles  entering  into  the  construction 
of  a  new  ship  of  one  thousand  tons : 

Iron ,  120,906  pounds $1 , 209  06 

Iron  spikes,  9,966  pounds 249  15 

Galvanized  spikes,  2,409  pounds 60  23 

Castings,  14,408  pounds 216  12 

Chain  cables  and  rigging  chains,  58,300  pounds 1, 457  50 

Anchors,  10,700  pounds 240  75 

Metal  and  nails  for  do.,  20,338  pounds 711  83 

Salt,  1,200  bushels 216  00 

Manilla,  12,423  pounds 310  57 

Hemp,  28,774  pounds 863  22 

Duck  for  sails  and  house-tops,  including  spare  sails,  7,150  yards 714  90 

Clinch  rings,  1,800  pounds 36  00 

-Foreign  white  pine  lumber  and  decking : 825  00 

Foreign  hackmatack  knees 330  00 

Copper  bolts,  composition,  castings,  paints,  oils,  crockery,  cabin  trimmings, 

nails,  and  sundry  outfits 1, 225  00 

Total  dutiable  articles  for  1,000-ton  ship  (gold) 8, 665  33 

As  a  partial  relief  to  the  ship-building  interest,  I  would  suggest  that  Congress  permit 
a  drawback  of  duties  paid  on  materials  entering  into  the  construction  of  new  vessels, 
(which  at  the  present  date  on  a  thousand-ton  ship  proves  to  be  between  eight  and  nine 
thousand  dollars,  as  shown  above,)  and  this  privilege  is  accorded  to  the  ship-owners  and 


204  NAVIGATION   INTERESTS. 

ship-builders  of  Great  Britain,  enabling  them  to  compete  with  all  other  commercial 
nations,  and  their  drawback  extends  to  all  articles  of  construction,  equipment,  and 
stores  used  in  building  and  fitting  out  of  new  vessels. 

Interested 'persons  can  obtain  from  the  honorable  Secretary  of  the  Treasury,  for  pur 
poses  of  comparison,  the  registered  amount  of  tonnage  built  each  of  the  past  twenty 
years.  There  have  been  so  few  vessels  built  for  our  merchants  in  recent  years  that  the 
average  age  of  American  sea-going  ships  is  over  ten  years,  and  on  this  account  our 
insurance  companies  meet  with  many  losses,  and  yet  the  ship-owner  now  pays  double 
the  old  rate  of  marine  insurance. 

DONALD  McKAY. 


OFFICE  OF  W.  H.  WEBB,  SHIP-BUILDER, 

No.  200  Lewis  Street,  New  York,  December  29,  1869. 

DEAR  SIR  :  In  the  absence  of  Mr.  W.  H.  Webb,  who  is  at  present  in  California,  we 
have  to  acknowledge  your  letter  of  the  20th  instant,  since  receipt  of  which  we  have 
consulted  some  of  our  largest  insurance  companies  in  this  city  on  the  points  you  raise, 
that  in  the  absence  of  Mr.  Webb  we  might  forward  you  the  opinions  of  men  in  whom 
he  would  repose  confidence,  leaving  Mr.  Webb  to  write  you  his  own  ideas  at  a  little 
later  day,  as  \ve  shall  send  your  letter  on  to  him. 

These" gentlemen,  such  as  Mr.  Dennis,  of  the  Atlantic  Mutual  Company,  Mr.  Phulixion, 
of  the  Sun  Mutual  Company,  neither  knowing  the  other  was  consulted,  expresses 
identically  the  same  opinion,  that  they  would  rate  the  composite  and  the  iron  ship  of 
similar  quality  at  same  rate,  insure  them  at  same  cost,  take  as  much  on  the  one  as  on 
the  other,  and  they  would  expect  the  one  ship  to  class  as  long  and  last  as  long  as  the 
other.  As  iron  ships  "  sweat"  a  good  deal,  their  conversation  left  us  to  believe  that, 
until  that  fault  is  got  over,  the  composite  ships  would  be  on  the  whole  more  favorably 
regarded  by  them. 

In  reply  to  a  question  put  by  the  Treasury,  asking  if,  in  his  opinion,  the  composite 
class  of  vessels  would  succeed  here,  Mr.  Webb  replied  so  recently  as  November  3,  of  the 
present  year.  "  Yes,  without  doubt ;  our  great  command  of  wooden  materials  in  this 
country  enabling  us  to  compete  more  successfully  in  building  this  class  of  vessels,  as 
against  foreign  ship-building,  than  with  those  wholly  built  of  iron." 

Hoping  that,  until  Mr.  Webb  is  able  to  address  you,  this  may  be  of  some  service,  we 
remain,  very  respectfully, 

C.  METZGAR, 
N.  M.  GILLAN, 
Joint  Attorneys  for  Win.  H.  Webb. 

Hon.  JOHN  LYNCH,  Washington,  D.  C. 


SAN  FRANCISCO,  January  10,  1870. 

DEAR  SIR  :  Your  valued  favor  of  the  20th  ultimo  has  been  forwarded  to  me  here  by 
my  attorneys  at  New  York. 

I  can  do  but  little  more  at  this  distance  from  home  than  indorse,  which  I  do  fully, 
their  reply  under  date  of  29th  ultimo,  a  copy  of  which  I  have  before  me. 

At  this  port  I  learn  that  the  English-built  iron  ship  is  quite  as  favorably  considered 
as  the  American-built  wooden  ship  for  shipments  to  Europe,  but  I  attribute  much  of 
this  to  the  unfortunate  fact  that  most  of  those  shipments  from  this  port,  as  well  as  from 
the  Atlantic  ports,  now  are  controlled  by  agencies  of  foreign  houses,  or  foreigners 
themselves  established  in  our  country. 

I  may  add,  in  regard  to  the  building  of  composite  ships  in  our  own  country,  that  if 
the  tariff  on  materials  used,  other  than  wood,  was  removed,  or  an  equivalent  granted 
in  some  other  manner,  we  could  succeed  eventually,'  as  against  all  Europe,  in  producing 
not  only  a  better  but  cheaper  composite  vessel ;  but  we  need  aid  from  the  government 
to  enable  the  ship-building  interest  of  the  country  to  engage  in  this,  to  us.  new  branch 
of  our  business,  and  one  which  requires  a  larger  investment  of  capital  than  heretofore* 
employed  in  the  building  of  wooden  vessels. 

I  am  confident  that  composite  ships  can  bo  built  in  this  country  to  advantage,  and 
such  as  would  have  advantages  in  several  respects  over  those  wholly  built  of  iron,  cer 
tainly  as  regards  comfort  of  passengers  in  hot  climates,  the  preservation  of  cargoes, 
as  well  as  economy  in  the  running,  and  the  safety  of  passengers  and  freight  when 
stranded. 

Trusting  the  above  will  satisfy  your  inquiry,  I  am  yours,  very  respectfully  and  truly. 

W.  H.  WEBB. 

Hon.  JOHN  LYNCH, 

Washington,  D.  C. 


NAVIGATION   INTERESTS.  205 

NEW  YORK,  38  John  st.,  December  4,  1869. 

SIR  :  I  take  tho  liberty  of  placing  before  you  my  views  of  the  disadvantages  tlio 
American  ship-builders,  shipwrights,  and  other  mechanics  are  at  this  time  laboring 
under,  caused  by  tho  heavy  duties  and  taxes  paid  on  all  material  used  in  building  and 
repairing  vessels,  and  as  your  committee  have  obtained  so  much  valuable  information 
on  the  subject  of  building  both  wooden  ami  iron  vessels,  I  will  not  dwell  on  this  point, 
but  will  endeavor  to  more  fully  demonstrate  the  fact,  that  the  luildiny  of  vessels  w  but 
a  part  of  the  disadvantages  which  the  mechanics  of  this  country  have  to  contend 
with. 

It  is  a  well  known  fact  that  the  lifetime  of  a  vessel  is  from  ten  to  fifteen  years,  and 
that  she  has  to  be  repaired  a  number  of  times  during  this  period,  and  in  many  cases 
the  outlay  for  repairs  is  nearly  equal  to  the  first  cost.  For  instance,  a  wooden  vessel 
has  to  be  recaulked  and  remetaled  every  two  years,  and  rebuilt  at  least  on  an  average 
every  seven  years.  An  iron  vessel  requires  to  be  docked  at  least  every  six  months  for 
the  purpose  of  cleaning  and  painting.  You  will  at  once  perceive  that  repairs  on  iron 
vessels  are  not  so  expensive  as  on  the  wooden  vessels,  but  at  tho  same  time  you  will 
observe  that  the  iron  vessel  requires  more  careful  attention  and  is  much  oftener 
docked. 

Another  great  detriment  to  the  shipwrights,  and  other  mechanics  of  this  country,  is 
that  the  greater  portion  of  tho 'foreign  freighting  business  is  carried  on  by  foreigners, 
and  these  foreign  vessels  will  not  make  their  repairs  in  this  country,  as  a  matter  of 
economy,  on  account  of  tho  high  prices  of  material,  such  as  iron,  and  other  metals, 
cordage,  &c.,  caused  by  the  high  tariff.  This  takes  away  from  our  dry-docks  and 
mechanics  that  employment  and  revenue  which  we  did  have  when  our  American 
vessels  controlled  foreign  freighting  business  or  tho  greater  portion  of  it.  It  is  also  a 
well  known  fact,  that  there  are  no  repairs  made  on  these  foreigners  in  this  country, 
unless  they  are  so  disabled  that  it  is  impossible  for  them  to  get  home,  and  even  then 
the  repairs  made  are  only  temporary.  As  an  illustration,  I  will  here  mention  the  case 
of  the  steamship  City  of  Cork,  of  the  Inman  Line,  which' vessel  struck  on  a  rock 
when  entering  the  harbor  of  Halifax,  Nova  Scotia,  in  July,  1868,  and .  came  to  New 
York  and  was  docked  in  one  of  the  docks  which  I  built  for  the  "  Erie  Basin  Dry -dock 
and  Warehouse  Company."  Her  stern  was  badly  damaged,  but  it  was  only  tempo 
rarily  repaired  with  wood  and  iron  to  make  her  safe  to  reach  Liverpool,  where  tho 
repairs  could  be  made  thoroughly,  and  employment  given  to  their  own  mechanics,  and 
also  allow  them  to  make  a  handsome  saving  over  our  prices.  This  is  but  one  instance  of 
many  I  could  name,  whereby  our  docks  and  mechanics  are  deprived  of  employment  on 
account  of  great  cost  of  material,  when  it  is  an  acknowledged  fact  that  our  mechanics 
can  execute  fifty  per  cent,  more  work  in  a  given  time  than  European  mechanics ;  still 
our  government  gives  no  aid  to  our  commercial  interest,  either  in  the  way  of  subsidies 
or  special  protection,  to  enable  us  to  run  a  line  of  steamers,  or  to  compete  with  the 
foreign  ship-builders,  or  our  merchants  and  others  interested  in  dry  docks  and  mechan 
ical  pursuits,  for  the  heavy  duty  on  sheathing  metal  and  copper  drives  by  necessity 
many  of  our  American  vessels  to  Europe  to  be  remetaled,  and  as  a  natural  result  our 
dry  docks  and  mechanics  remain  idle.  To  give  you  a  more  clear  idea  of  the  determin 
ation  of  foreigners  not  to  give  employment  or  spend  any  money  in  this  country,  I  will 
stftte  the  following  fact :  The  ship  Mayflower,  hailing  from  Liverpool,  arrived  at  Port- 
laud,  Maine,  in  August  last,  with  a  cargo  of  coal,  and  leaking  so  badly  that  it  was  neces 
sary  to  keep  a  steam-pump  going  most  of  the  time.  Ho  refused  to  make  repairs  there, 
but  sailed  for  Halifax,  Nova  Scotia,  so  that  he  could  employ  his  own  countrymen.  I 
think  you  will  at  once  see  that  there  is  as  much  lost  to  the  shipwright,  dry  docks 
companies,  and  other  mechanics,  in  repairing  vessels,  as  there  is  in  building.  My 
opinion  is,  if  the  duty  is  removed  from  all  material  used  in  the  construction,  repairs, 
and  sailing  ships,  within  a  short  time,  we  shall  as  heretofore  be  able  to  compete  with, 
if  not  rival  the  world  in  building  as  well  as  sailing  both  wooden  and  iron  vessels,  for 
we  have  the  material  and  ability  to  do  so,  and  trust  our  representatives  in  Congress 
will  give  us  that  aid  and  protection  which  will  enable  us  to  realize  our  highest  expec 
tations. 

I  have  the  honor  to  remain  your  most  obedient  servant, 

JAS.  E.  SIMPSON, 
President  Portland  Dry  Dock  and  Warehouse  Company. 

Hon.  JOHN  LYNCH, 

Chairman  Congressional  Committee  on  Sh'^-lttilding. 


NEW  YORK,  January  13,  1870. 

SIR  :  Irt  reply  to  yonr  communication  of  the  llth  instant,  we  would  give  as  our 
estimate  of  the  cost  of  victualing  and  manning  an  American  ship  of  1,000  tons  regis 
ter,  say  $1,100  per  month.  It  would  bo  difficult,  however,  to  estimate  the  cost  per  100 


206  NAVIGATION    INTERESTS. 

tons  register,  to  apply  to  vessels  of  all  sizes,  as  a  vessel  of  500  tons  requires  as  many 
officers  as  one  of  1,500  tons,  (with  the  exception  of  the  third  mate,)  and  pays  nearly  as 
high  wages.  Frequently,  too,  vessels  of  the  same  tonnage  have  a  difference  of  two  or 
three  sailors  in  the  number  of  their  crews,  as  some  are  more  heavily  sparred  than 
others,  and  require  more  men  to  handle  them. 

An  average  crew  for  an  eastern  ship  of  1,000  tons  register,  would  cost,  at  the  present 
rates  of  wages,  about  as  follows,  viz : 

Master,  ($125  to  $200,  according  to  qualifications,)  say $150 

Mate,  $50  ;  second  mate,  $40 90 

Cook,  steward,  and  carpenter,  each  $35 105 

15  sailors,  each  $30 450 


795 
Making  twenty-one  'persons,  "all  told."    Victuals  average  fifty  cents  per  day. ..      315 

1,110 


Some  ships  carry  three  or  four  boys  or  "  ordinary  seamen,"  at  one-half  or  two-thirds 
the  wages  of  "  able-bodied  seamen,"  and  ships  bound  on  long  voyages  can  obtain 
sailors  now  at  twenty-five  dollars  per  month,  but  in  the  Atlantic  trade  the  current  rate 
is  thirty  dollars  per  month,  as  above  stated. 

We  annex  memorandum  of  the  actual  cost  of  manning  three  vessels  of  different 
sizes,  now  in  this  port,  and  all  hailing  from  Maine ;  and  should  you  require  any  addi 
tional  information,  we  are  always  at  your  service. 
•    Your  obedient  servants, 

RICH.  P.  BUCK  &  CO. 
Hon.  JOHN  LYNCH, 

Chairman  Com.  an  Nav.  Interests. 

Bark  of  563  tons  : 

Master $150 

Mate 50 

Second  mate 35 

Cook  and  steward,  (one  man  for  both) 40 

Eight  seamen,  at  $30 240 

515 
Victualing  twelve  persons  at  fifty  cents  per  day,  average 180 

695 

Ship  of  1,308  tons : 

Master $150 

Mate 60 

Second  mate 40 

Cook 35 

Steward 40 

Carpenter , 35 

Fifteen  sailors,  at  $30 450 

810 
Victuals  for  twenty-one 315 

1,125 

Ships  of  1,506  tons : 

Master $200 

Mate CO 

Second  mate : 45 

Third  mate 35 

Carpenter 40 

Cook 35 

Steward 35 

Eighteen  sailors,  at  $30 * 540 

990 
Victualing  twenty-five  persons 375 

1.365 


NAVIGATION    INTERESTS.  207 

The  master  of  the  latter  ship  was  formerly  in  one  of  1,116  tons,  new  measurement, 
and  although  nearly  4UU  tons  smaller,  she  required  and  carried  the  same  crew  as  this 
Dew  one. 

NEW  YORK,  January  20,  1870. 

DEAR  SIR  :  We  have  delayed  answering  your  favor  of  the  15th  instant,  in  order  to 
obtain  reliable  information  respecting  the  sailing  of  French  vessels.  The  only  French 
captain  wo  can  find  has  a  vessel  of  about  400  tons.  Her  crew  list  is  as  follows : 

Fraiics. 

Captain 400 

First  mate 150 

Second  mate 75 

Cook  and  steward,  (one  person) 70 

Carpenter 70 

Six  seamen,  at  50  francs 300 

Two  apprentices 70 

One  boy 25 

1, 1GO 


At  5i  francs  per  dollar  in  gold  ................................................ 

Victualing  per  month  1,200  francs,  equal  ......................................  229 

Gold  ............................................................  450 

Add  25  per  cent,  premium  on  gold  ............................................  1LJ 


Equal  in  United  States  paper  ..........  .  .........................  56b 

Estimate  for  a  French  ship  of  1,000  tons  : 

Francs. 

Captain  .....................................................  ................  600 

Mate  .........................................................................  200 

Second  mate  ............  ....................................................  100 

Third  mate  ..................................................................  70 

Carpenter  ...................................................................  70 

Cook  ........................................................................  70 

Steward  .....................................................................  70 

Twelve  seamen  ..............................................................  600 

Three  boys  ..................................................................  100 

1,880 


At  5^-  francs  per  gold  dollar $358 

Victuals  per  month,  2,000  francs • .381 

Gold 739 

Add  25  per  cent,  premium  on  gold 185 

United  States  currency 924 

Estimate  for  a  British  ship  of  1,000  tons : 

&     s. 

Captain 16    0 

Mate 7    0 

Second  mate 5    0 

Third  mate 3    5 

Carpenter .-. 510 

Cook 3    5 

Steward 3  15 

Twelve  men,  at  £2  15* 33    0 

Three  boys,  at  15* 2    5 

79    00 


At  $6  currency  per  pound  sterling,  (being  $4  80  gold,  and  25  per  cent,  premium)    $474 
Victualing,  twenty-two  persons  at  15  cents  per  day,  £41  5s.,  equal 247 

United  States  paper  currency 721 


208  NAVIGATION    INTERESTS. 

A  bark  now  here,  hailing   from  Sunderland,  pays   the   following,   (she   is  546  tons 

register :) 

£    s. 

Captain,  £14;  mate,  £6  10s '20  10 

Second  mate,  £4  10*.;  carpenter,  £5  10s 10    0 

Cook,  £3  5s.;  steward,  £3  15s 7    0 

Eight  able  seamen,  at  £2  15*. ;  and  three  boys,  at  15s 24    5 


Gl  15 


At  $6  United  States  currency  per  pound $370  50 

Victuals,  seventeen  persons,' at  15d.  per  day 191  25 

.  .  United  States  currency 5G1  75 


Hoping  this  information  will  reach  you  in  season  to  be  of  service,  we  remain,  your 
obedient  servants, 

RICHARD  P.  BUCK  &  CO. 
Hon.  JOHN  LYNCH, 

Chairman,  <fcv  Washington,  D.  C. 

P.  S. — Light  dues  are  still  collected  by  England,  and  we  find  from  our  vessels  ac 
counts  that  they  amount  to  five  or  six  pence  sterling  per  ton  in  the  Bristol  channel. 
There  are  other  local  charges  of  this  kind  on  the  English  coast  and  the  British  posses 
sions. 

NEW  YORK,  January  13,  1870. 

DEAR  SIR  :  In  reply  to  your  note  to  our  senior,  Mr.  A.  A.  Low,  we  beg  to  say  that 
our  experience  gives  about  $125  per  ton  per  month,  or  $1,250  per  month  for  vessels  of 
1,000  tons  each  for  victualing  and  manning.  For  such  vessels  we  have — 

Master,  say §150 

First  mate «, GO  to  70 

Second  mate 35  to  40 

Steward 40 

Cook 40 

Sailmaker 40 

Carpenter 35 

Sixteen  able  seamen 25 

Four  ordinary  seamen 15 

Four  boys 5 

Average  wages,  about  $900  per  month. 

Average  victualing,  about  $350  per  month. 

Very  truly  yours,  &c., 

A.  A.  LOW  &  BRO. 
JOHN  LYNCH,  Chairman. 


AMERICAN  SHIP-BUILDING. 

The  following  letter  is  from  a  gentleman  who  was  formerly  an  English 
iron-master,  and  now  in  business  in  Philadelphia.  He  has  a  practical 
knowledge  of  the  subject  upon  which  he  writes : 

From  the  morning  papers  of  the  25th  of  October  it  appears  that  the  congressional 
committee  appointed  to  investigate  the  cause  of  the  decline  of  the  mercantile  navy  of 
the  United  States,  and  the  best  method  of  restoring  prosperity  to  the  ship-building  in 
terest,  haveadjourtied  to  meet  in  Philadelphia  on  the  first  Thursday  in  December  next; 
that  the  questions  before  the  committee  were  narrowed  down  to  distinct  propositions, 
which  will  probably  be  recommended  to  Congress.  These  are  the  remission  of  all  du 
ties  on  materials  entering  into  the  construction  of  ships;  the  permitting  foreign  ships 
to  be  purchased  and  admitted  to  American  register ;  and  the  granting  of  subsidies  to 
steamship  lines ;  and  lastly,  offering  a  premium  for  building  ships  in  this  country,  by 
allowing  a  drawback  on  the  imported  materials  used. 

On  a  subject  of  such  national  importance,  and  one  involving  such  immense  inter 
ests,  there  must  naturally  be  a  great  diversity  of  opinion,  and  any  information  that 
may  show  the  subject  in  a  new  light  may,  perhaps,  be  deemed  acceptable.  With  this 
view  the  following  observations  are  thrown  together  to  endeavor  to  show  that  it  is  not 
the  comparatively  low  standard  of  wages  in  Europe  alone  that  prevents  iron  for  ehip- 


NAVIGATION   INTERESTS.  209 

building  purposes  being  produced  in  this  country  on  equal  terms  with  that  brought 
from  Europe. 

It  is  chiefly  the  lack  of  organization,  and  the  situations  of  the  different  establish 
ments,  that  prevent  ship  plate-iron  being  cheaply  produced.  It  is  a  fact  beyond  dis 
pute,  that  pig-iron  can  be  made  as  cheap,  and  coal  can  be  obtained  cheaper  on  the  Ohio 
than  on  the  Tees,  in  England.  Why,  then,  cannot  iron  for  ship-building  bo  made, 
and  ships  be  built  on  the  Ohio  at  the  same  price  by  ton  with  American  iron,  as  at  the 
Atlantic  ports  with  European  iron,  even  if  no  duty  is  paid  on  it  ?  Simply  for  want  of 

Mie  organization  used  in  England,  and  the  policy  used  in  France. 

*  *  *  **  **  *  *  *  * 

The  pig-iron  is  dear  on  account  of  the  relative  position  of  the  ore,  coal,  and  transport 
f o  the  mills ;  here  again  profit  must  bo  made  on  the  pig-iron,  after  the  miner  has  made 
his  on  the  ore  and  coal,  and  the  railway  company  made  theirs  on  the  transport;  thus 
everything  used  is  to  the  disadvantage  of  the  ship-builder,  and  vessels  cannot  be  built 
at  a  low  price.  The  question  is,  how  and  when  can  this  be  altered?  To  this  no  satis 
factory  answer  can  bo  given  as  long  as  ships  are  built  ou  the  eastern  coast  of  the  States; 
and  to  solve  the  diifieulty  a  new  location  must  bo  chosen,  where  iron-ore  and  coal  are 
found  in  a  near  proximity  to  a  navigable  river,  that  pig-iron  can  be  made  as  cheap  as 
in  England,  and  where  coal  can  be  obtained  for  manufacturing  the  same  at  as  low  a 
price  as  it  costs  at  works  there,  and  where  ships  can  be  built  and  launched  as  cheap, 
except  the  difference  in  the  price  of  labor;  but  this  difference  can  be  compensated  by 
the  fact  of  the  superiority  of  American  iron  over  English,  which  will  enable  vessels  to 
be  built  of  lighter  iron,  and  consequently  a  greater  tonnage  for  their  weight  than  British 
built  ships. 

The  proposition  about  to  be  made  may  at  first  appear  to  be  impractical  to  those 
accustomed  to  launch  their  vessels  in  salt  water,  but  on  considering  the  improvements 
of  the  age,  and  the  facility  with  which  ships  are  now  by  machinery  lifted  out  of  tho 
water,  the  proposition  will  show  no  difficulties  which  may  not  be  overcome. 

The  best  locality  for  building  iron  ships  in  the  United  States  will  be  found  to  be  on 
the  Mississippi  or  Ohio  Rivers,  above  Cairo,  and  tho  situation  whose  iron  for  building 
the  same  can  be  made  as  cheap  as  in  England  is  on  the  Ohio. 

Here,  then,  in, the  center  of  the  States,  iron  ships  can  be  built  to  any  extent  or  bur 
den,  and  be  towed  down  to  New  Orleans,  either  alone  or  partially  supported  on  lighters, 
according  to  their  size,  and  thence  to  New  York  or  elsewhere  to  receive  their  engines 
and  full  riggjng,  or  their  engines  can  be  sent  to  and  fixed  in  New  Orleans. 

To  carry  out  the  foregoing  suggestions  it  would  be  necessary  to  form  a  company  of 
the  most  practical  men  for  each  department,  with  ample  capital  to  carry  out  the  whole 
plan. 

It  is  the  magnitude  and  extent  of  the  grand  rivers  of  this  continent  which  enables 
one  to  see  the  foregoing  plans  as  quite  practicable,  although  at  first  sight  they  deviate 
from  the  old  beaten  track,  yet  on  the  slightest  reflection  by  practical  men,  the  whole 
project  will  be  accepted,  as  the  only  means  that  can  be  devised  of  enabling  America 
successfully  to  compete  with  Europe  in  establishing  an  independent  mercantile  navy. 
Let  us  for  an  instant  refer  to  what  has  lately  been  proposed  to  assist  tho  shipping 
interest.  First,  the  remission  of  duties  on  materials  entering  into  the  construction  of 
ships. 

By  building  ships  with  iron  from  Europe  the  States  will  bo  dependent,  and  continue 
so,  for  its  ship-building  material,  as  no  attempt  would  be  made  to  produce  native  ma 
terial  on  the  east  coast,  while  foreign  iron  could  bo  purchased  cheaper  thau  it  could  bo 
made  there.  Then,  again,  purchasing  foreign  ships ;  this  might  be  done  at  a  cheaper 
rate  than  they  are  now  built  here,  but  is  it  the  policy  of  this  country  virtually  to  em 
ploy  European  ship-builders  in  Europe  to  build  vessels  which  can,  by  a  proper  syste 
matic  arrangement,  be  built  as  cheaply  by  Americans  in  this  country  ?  The  answers  to 
these  questions  are  evident. 

But  other  questions  may  be  asked.  Can  pig-iron  be  made  on  the  Ohio,  and  coal 
worked  for  converting  it  into  ship-plates  at  the  same  price  as  iron  and  coal  costs  in 
England  ?  The  answer  is  decidedly  yes,  and  scores  of  places  could  bo  pointed  out  on 
the  Ohio  whero  pig-iron  can  be  made  and  coal  delivered  quite  as  cheap  as  in  England, 
and  why  this  is  not  generally  known  could  easily  be  explained,  if  necessary.  This  sub 
ject  is  one  of  the  greatest  national  importance,  and  should  be  investigated  by  those 
who  are  interested  in  the  prosperity  of  the  country,  before  measures  are  taken  which 
will  only  partially  assist  in  improving  the  condition  of  ship-owners,  and  which  can 
never  satisfy  the  nation.  With  such  enormous  deposits  of  iron-ore  and  coal  throughout 
the  country  in  situations  most  favorable  for  working  them,  is  it  policy  to  let  them 
remain  undisturbed,  and  purchase  ships,  with  gold,  from  other  nations,  or  employ 
capital  at  home  in  developing  the  resources  of  the  country,  and  give  employment  to 
thousands  of  its  inhabitants  1 

JOHN  PLAYER, 
3904  Walnut  street,  Philadelphia. 

Hon.  JOHN  LYNCH, 

Chairman  Committee  on  Ship-building,  <fc. 


210  NAVIGATION   INTERESTS. 

WILMINGTON  IRON  WORKS, 

Wilmington,  Del.,  January  18,  1870. 

DEAR  SIR  :  Your  favor  of  13th  was  received,  and  I  take  pleasure  in  replying  to  your 
interrogatories  to  the  best  of  my  ability. 

In  the  United  States,  where  no  positive  practice  regulates  the  standard  of  dimensions 
of  the  parts  and  pieces  of  an  iron  vessel,  but  the  whole  question  of  strength  of  detail 
is  left  to  the  experience  and  knowledge  of  the  builder,  or,  more  frequently,  to  the  crude 
ideas  of  the  party  for  whom  the  ship  is  to  bo  built,  it  has  always  been  the  custom  of 
the  builder  to  determine  his  price  by  the  amount  of  iron  and  other  material  to  be  used. 
Hence  you  will  readily  understand  how  two  ships  of  the  same  tonnage  may  cost  differ- 
ent  figures. 

In  England  and  France,  where  insurance  depends  upon  the  kind  of  construction,  tho 
builders  have  all  fallen  into  one  class  of  specifications,  in  which  the  size  of  the  vessel 
determines  the  proportions  of  each  piece  or  part,  and  consequently  a  price  per  ton  can 
easily  be  given  which  will  fit  all  cases. 

Supposing  that  your  inquiry  relates  to  strictly  first-class  ships,  1  have  to  say  that 
the  labor  upon  a  sailing-ship  of  1,000  tons,  (hull  and  cabins  only,)  the  material  'being 
iron,  can  be  done  for  $58,000,  and  that  the  material  of  all  kinds  can  be  purchased  for 
$42,000  to  $46,000. 

For  a  steamship  of  like  capacity  the  cost  would  not  differ  materially  in  tho  items  of 
labor  and  material,  of  course,  exclusive  of  machinery. 

For  a  screw  steamship  of  1,000  tons  there  Avould  be  required  an  engine  of  sixty  inches 
diameter  and  sixty  inches  stroke,  which,  with  boilers  of  adequate  capacity,  with  all 
the  details  complete,  would  cost  $48,500. 

For  a  side-wheel  ship  of  1,000  tons,  there  would  be  required  a  lever-beam  engine  of 
fifty-six  inches  diameter,  ten  feet  stroke,  which,  with  boilers,  &c.,  complete,  would  cost 
$51,000. 

The  masts,  sails,  rigging,  furniture,  outfit,  and  stores  of  a  sailing-ship  of  1,000  tons 
would  cost  from  $15,000  to  $18,000. 

For  a  steamship  the  figures  would  not  materially  differ ;  tho  diminished  cost  of 
masts,  rigging  and  sails  would  be  made  up  nearly  by  the  stores  and  fixtures  for  the 
machinery  department. 

Will  be  pleased  to  further  serve  you  if  in  my  power. 
Very  truly  yours, 

WM.  G.  GIBBONS. 

Hon.  JOHN  LYNCH,  Washington,  D.  C. 


CHICAGO,  December  20,  1869. 

DEAR  SIR  :  I  hereby  acknowledge  the  receipt  of  your  communication  of  tho  llth 
instant,  requesting  answers  to  certain  interrogatories,  for  the  use  of  tho  committee 
named. 

I  have  carefully  considered  the  subject  alluded  to,  and  beg  leave  to  make  the  follow 
ing  statement  in  answer  thereto  : 

The  present  condition  of  ship-building  in  Chicago,  as  compared  with  the  period  from 
1854  to  1860,  may  be  described  by  the  word  "  abandoned,"  with  the  exception  of  a  few 
tugs,  canal-boats,  dredges,  and  scows,  built  for  local  uses.  Ship-building  has  been 
almost  entirely  given  up  since  the  war.  From  1854  to  1860  it  was  practicable  to  build 
vessels  with  profit  in  ChicagQ,  and  several  propellers  and  schooners  were  built  during 
this  period. 

The  present  average  rate  of  wages  for  "  new  work"  may  be  set  at  $3.  I  think  men 
could  be  got  for  less  this  winter,  if  any  new  vessels  were  to  bo  built.  As  there  are  no 
vessels  building  this  quotation  may  be  more  nominal  than  real.  Tho  wages  on  repairs, 
or  "  old  work,"  are  $3  50  for  ten-hour  days,  and  $3  for  eight-hour  days  in  winter ;  and 
wages  on  "  old  work"  are  always  and  everywhere  about  fifty  cents  a  day  greater  than 
on  "  new  work." 

The  average  rates  of  wages,  from  1854  to  1860,  were  from  $2  to  $2  25  per  day. 

The  cost  per  ton  for  building  the  hulls  of  sail- vessels  or  steamers  would  be,  probably, 
if  any  were  building,  from  $40  to  $45.  Tho  cost  of  same,  from  1854  to  1860,  was  from 
$30  to  $35.  Tho  cost  per  ton  for  the  sails  and  rigging  usually  amounted  to  about  one- 
half  the  price  of  tho  hulls :  say,  hull,  two-thirds  sails  and  outfit  rigging  one-third  tho 
whole  price  of  vessel. 

The  cost  of  materials  for  each  ton  of  hull,  from  1854  to  1860,  was  from  $8  to  $10.  The 
coat  of  same  per  ton,  at  the  present  time,  would  be  $12  to  $15.  (Tho  cost  of  rope  and 
canvas  is,  I  think,  greater  proportionately  than  formerly.) 

It  might  be  useful  to  state,  in  this  connection,  that  about  ten  days'  labor  may  bo 
regarded  as  entering  into  the  production  of  one  ton  of  the  hull  of  lake  shipping,  old 
measurement,  upon  which  the  foregoing  approximations  have  been  based.  As  tho  now 


NAVIGATION    INTERESTS.  211 

measurement  is  about  twenty-five  per  cent,  less  than  in  the  old,  in  the  case  of  lako 
sail-vessels,  seven  and  a  half  days  may  be  taken  when  the  new  measurement  is  used. 

The  amount  of  duty  on  materials  in  a  thousand-ton  ship,  or  in  each  ton  of  a  ship, 
built  in  this  port,  might  at  first  sight  be  deemed  to  depend  upon  the  extent  to  which 
articles  of  foreign  growth  or  manufacture  enter  into  her  construction.  Aud  here, 
where  the  wood  and  iron  of  the  hull  is  of  home  production,  and  the  rope,  canvas, 
ground  tackle,  or  machinery,  may  be  wholly  or  partially  imported,  it  might  appear 
that  duties  had  but  slight  influence  in  adding  to  the  cost  of  vessels  ;  but,  nevertheless, 
it  is  true  that  duties  do  add  to  the  cost  of  vessels  in  every  case  where  it  would  be 
cheaper  to  import  the  materials,  could  they  be  brought  in  free  of  duty.  American 
phip-builders  had  become  rivals  with  those  of  England  lor  the  construction  of  the  fleets 
of  the  world.  Vessels  had  become  articles  of  export  to  all  nations,  as  well  as  carriers 
of  commerce  between  them  all ;  and  duties  laid  upon  the  materials  entering  into  their 
construction  was  of  the  nature  of  a  bounty  paid  to  our  rival  from  whom  many  of  those 
materials  must  come.  It  is  not  material,  therefore,  to  enter  upon  the  determination  of 
the  precise  degree  of  impolicy  embodied  in  this  most  impolitic  measure  of  levying 
duties  upon  so  grand  an  article  of  export  as  the  noble  ship  that  careers  over  the  course 
of  ocean  like  a  thing  of  life. 

Vessels,  when  built  in  Chicago,  are  generally  constructed  on  contract  for  the  owners. 
The  masters  are  frequently  part  owners. 

I  think  vessels  could  be  built  in  this  port  for  Chicago  vessel-owners,  in  competition 
with  provincial  builders,  providing  we  could  obtain  the  materials  free  of  duty,  and  this 
for  the  following  reasons :  First,  the  cost  of  materials  being  the  same  to  our  builders 
in  the  provincial  port,  the  expense  of  transportation  only  need  be  added  to  place  them 
under  the  hands  of  our  builders  in  their  own  yards.  Against  this  disadvantage  we 
should  offset  the  cost  and  inconvenience  of  owners  going  to  a  foreign  port  to  superin 
tend  a  vessel's  construction.  Second,  the  greater  skill  of  American  mechanics  may  be 
fairly  placed  against  the  lesser  wages  of  the  Canadian  workman,  with  the  controlling 
advantage  in  our  favor,  that  the  style  of  model  and  workmanship  of  our  bumlers  better 
suits  the  taste  of  our  owners  than  the  style  of  provincial  builders. 

But  were  the  vessels  to  be  imported  free  of  duty  rather  than  the  materials,  then 
would  our  builders  and  workmen  go  to  the  provinces  and  build  all  our  vessels ;  and, 
thereafter,  a  ship-yard  on  the  American  shore  of  the  lakes  would  be  a  place  non-existent, 
with  its  mysteries  forgotten  and  unknown  to  our  people,  and  the  history  of  its  achieve 
ments  become  as  obscure  and  mythical  as  that  of  the  "  mound  builders"  anciently  in 
habiting  this  region  of  country. 

I  am,  sir,  yours  respectfully, 

WILEY  M.  EGAN. 

Hon.  JOHN  LYNCH, 

Chairman  Committee  on  Navigation  Intwcsts. 


BUFFALO,  December  15,  1869. 

DEAR  SIR  :  Yours  of  8th  instant  is  at  hand,  and  contents  noted,  and  in  reply  would 
Bay: 

1st  The  ship-building  is  very  much  less  now  than  it  was  from  1854  to  I860.  2d. 
The  present  average  wages,  $3  50  to  $3  90  per  day.  In  1854  to  18GO,  they  were  $2  to 
$2  25  per  day.  The  cost,  what  we  call  old  measurement,  was  in  1854  to  18(30,  $28  to  $30 
per  ton;  at  present  it  is  $48  to  $50  per  ton.  Flitch,  which  is  for  frames,  six 
inches,  in  1854  to  1860  cost  $12  to  $14 ;  now  costs  $22  to  $26  per  thousand.  Ship  plank, 
1854  to  1860,  cost  $16  to  $20  per  thousand ;  now  costs  8oO  to  $50  per  thousand.  Duty  on 

material  in  1854  to  1860  and  at  present  time .  There  is  now  a  government  tax  of 

about  $300  on  small  class  vessels,  when  the  keel  is  first  laid  on  blocks,  which  there 
was  not  in  1854  or  1860. 

At  present,  as  in  1854  to  1860,  ship-builders,  in  some  cases,  own  interest  in  vessels ; 
also,  some  masters.  It  costs  so  much  at  present  to  build,  that  the  most  of  them  are 
not  able  to  own  ships  or  vessels. 

An  800-ton  vessel  all  ready  for  sea,  at  present  would  cost  about  $60,000  to  $65,000. 
In  1854  to  1860,  same  vessel  would  cost  $38,000  to  $40,000.  We  could  build  as  cheap 
or  cheaper  than  any  other  nation,  with  same  price  of  material  and  dut y  off,  as  I  think 
our  mechanics  do  more  work  in  a  day  than  they  do  in  Canada.  Our  people  are  more 
active.  The  several  trade  unions  in  United  States  are  a  drawback  on  all  ship  and 
othor  work,  as  wo  are  troubled  with  strikes.  Our  vessels  here  on  the  lakes  are  fur 
superior  to  the  Canada  vessels  in  model,  strength,  and  speed.  The  reason  is,  I  think, 
that  we  have  better  ship  draughtsmen.  In  1853,  I  built  a  steam  propeller  at  a  cost  of 
$36,000,  and  the  same  propeller  would  now  cost  about  $75,000  to  $80,000.  I  have  sailed 
from  a  boy  until  1855,  and  owned  and  do  now  own  steam  and  sail  vessels,  and  I  find 
that  for  the  last  seven  or  eight  years  vessels  have  not  made  any  money,  and  would  bo 
pleased  to  sell  out  if  I  could  do  so.  Find  that  rope  is  twenty-five  cents  per  pound,  and 


212  NAVIGATION    INTERESTS. 

in  1854  to  18GO  it  cost  ten  cents  per  pound,  and  most  everything  else  in  same  propor 
tion.  We  now  pay  government  tax  of  thirty  cents  per  ton,  which  all  goes  to  enhance 
cost  of  vessels.  Thirty  cents  per  ton  is  called  tonnage  dues,  and  income  on  profits 
"when  there  is  any. 

Hoping  the  above  will  be  what  you  inquired  for,  I  am,  yours  respectfully. 

FRANK  PEREW. 

JOHN  LYNCH,  Esq. 


CUSTOM-HOUSE,  COLLECTOR'S  OFFICE, 

Portsmouth,  N.  H.,  January  4,  1870. 

SIR  :  From  information  received  fro  m  communication  with  prominent  ship-builders 
of  this  place,  I  am  enabled  to  reply  to  the  questions  submitted  in  your  letter  of  tho 
15th  ultimo,  as  follows,  viz  : 

Question  1.  What  is  the  present  condition  of  ship-building  at  your  town,  as  compared 
witti  the  period  from  1854  to  1860  ? 

Answer.  During  the  period  from  1854  to  1880,  there  were  in  our  city  five  ship-yards 
in  successful  operation,  producing  ships  equal  if  not  superior  to  any  ailoat.  At  that, 
time,  ship-building  was  the  business  of  our  city.  At  the  present  time  there  are  only  two 
yards  in  operation,  and  these  are  doing  a  very  small  business,  comparatively. 

Question  2.  What  are  the  present  average-rates  of  wages  paid  to  first-class  mechanics 
on  ship-work  ? 

Answer.  The  present  rate  of  "wages  to  first-class  mechanics  on  ship-work  is  $2  50  per 
day — working  hours  from  sunrise  to  sunset  in  the  winter  season,  and  in  the  summer 
ten  hours  for  a  day. 

Question  3.  What  were  the  average  rates  of  same  from  1854  to  1860  ? 

Answer.  The  average  rate  from  1854  to  1860  was  §2  per  day. 

Question  4.  What  is  the  present  cost  per  ton  for  building  sail-vessels,  and  of 
steamers  ? 

Answer.  Tho  present  cost  per  ton  for  building  sailing-vessels,  ready  for  sea,  averages 
$75  ;  for  steamers,  exclusive  of  machinery,  $65. 

Question  5.  Cost  of  same,  from  1854  to  1860  ? 

Answer.  The  average  cost  of  sailing-vessels,  from  1854  to  1860,  was  about  $60  per 
ton  ;  steamers,  $55  per  ton. 

Question  6.  What  was  the  cost  of  materials  for  each  ton,  from  1854  to  1860  ? 

Answer.  Average  cost  of  materials  for  sailing-vessels,  about  $42  per  ton ;  steam 
ers,  $40. 

Question  7.  What  is  the  cost  per  ton  of  the  same,  at  the  present  time? 

Answer.  Cost  of  materials  for  sailing-vessels,  about  $52  per  ton ;  steamers,  $45. 

Question  8.  Amount  of  duty  on  materials  in  a  thousand-ton  ship,  from  1854  to 
1860? 

Answer.  About  twelve  hundred  dollars. 

Question  9.  Also,  amount  of  the  same  at  the  present  time  ? 

Answer.  Seven  thousand  five  hundred  dollars. 

Question  10.  How  are  vessels  built  and  owned  in  your  town  ?  Are  builders  and 
masters  generally  owners  in  the  vessels  which  they  build  and  sail  ? 

Answer.  Vessels  are  owned  mostly  in  small  shares,  by  the  builders,  masters,  and  men 
of  small  means. 

Question  11.  Could  you  build  vessels  at  the  present  time  in  competition  with  the  for 
eign  or  provincial  builder,  providing  you  could  obtain  the  materials  free  of  duty  ? 

Answer.  If  ship -building  materials  were  free  from  duty,  we  could,  in  a  very  short 
period,  compete  with  foreign  builders. 

Very  respectfully,  your  obedient  servant, 

JOHN  H.  BAILEY,  Collector. 

Hon.  JOHN  LYNCH,  M.  C., 

Chairman  Congressional  Committee,  <fc. 


AUGUSTA,  MAINE,  February  5, 1870. 

DEAR  SIR:  The  ship-building  business  in  our  place  has  dwindled  down  next  to 
nothing.  In  1854,  there  were  twelve  ships  built  on  one  river,  (Damaris  cotta,)  besides 
other  smaller  vessels;  1869,  one  barque ;  and  this  year,  one  schooner,  is  all  that  I  know  of. 

No  one  thinks  of  building  now,  except  he  has  money  equal  to  the  cost,  and  knows 
no  other  business.  Wages  for  common  carpenters  are  about  $2  per  day  of  ten  hours. 
In  1854,  wages  were  about  $3  25,  but  the  money  panic  in  the  fall  of  1854/55,  and  '56, 
carried  wages  down  to  about  $1  75. 

The  present  cost  of  an  A  1  ship,  (sail,)  1,000  tons,  fitted  for  sea,  is  about  $75  per  ton. 
Cost  of  the  same  1854,  thence  up  to  I860,  was  about  $50  to  $55  per  ton. 


NAVIGATION  •  INTERESTS.  2 1  3 

I  have  no  experience  in  steamers.  The  cost  for  the  materials  in  a  ship  of  1,000  tons, 
at  present  time,  is  about  $52  50  per  tou  ;  1854  to  I860,  about  $36  per  ton. 

The  duties  on  a  thousand  ton  ship,  at  present  time,  are  about  $8  or  $9  per  ton. 

Duties  on  same  in  1854  to  1860,  about  $1  to  $1  50  per  ton.  The  above  estimates  aro 
on  old  measure.  Vessels  are  generally  owned  and  sailed  by  the  builders  and  masters  in 
this  vicinity. 

Maine  is  suffering  in  this  respect  more  than  any  other  State,  as  you  will  see  by  the 
Secretary  of  the  Treasury's  report.  But,  as  things  now  are,  our  yards  are  deserted; 
carpenters  migrating  West,  and  the  men  otherwise  becoming  depleted,  so  that  in  case 
of  a  sudden  war,  wo  shall  neither  have  skilled  ship-caipeiiters  nor  American  sailors. 
In  the  last  rebellion  we  could  not  have  existed  as  a  nation  without  either  class  of 
those  men. 

We  then  had  well-trained  sailors  ready  to  defend  the  flag.  Our  government  cannot 
make  so  profitable  an  investment  for  its  defense,  as  to  foster  its  navigation  by  grant 
ing  a  drawback  for  duties,  and  remit  the  taxes  on  ships.  It  would  be  absurd  to  permit 
foreign-built  ships  to  bo  imported  free,  and  sailed  under  the  American  ilag,  while  our 
ship-builders  are  being  starved  by  high  duties  and  taxation. 
Respectfully, 

B.  D.  METCALF. 

Hon.  JOHN  LYNCH. 


LETTERS  FEOM  UNITED  STATES  CONSULS. 

The  following  inquiries  were  addressed,  through  the  State  Depart 
ment,  to  consuls  of  the  United  States  at  various  ports  of  Europe  and 
British  America,  in  regard  to — 

Cost  in  Great  Britain  of  wooden  ships  per  ton,  fitted  for  sea,  in  1860. 

Same  of  iron  ships  per  ton,  fitted  for  sea,  in  1860. 

Same  of  wooden  steamers  per  ton,  fitted  for  sea,  in  I860* 

Same  of  iron  steamers  per  ton,  fitted  for  sea,  in  1860. 

Also,  cost  of  each  of  foregoing  at  present  time. 

Rates  of  wages  of  first-class  mechanics  on  ship- work,  in  London,  on  the  Clyde,  and 
on  the  Tyne,  in  1860  ;  rates  of  same  at  present  time. 

Rates  of  insurance  in  wooden  and  iron  steamships,  sailing  vessels,  &c.;  regulations 
adopted  by  English  government  to  ascertain  amount  of  material  entering  into  the  con 
struction  of  ships,  which  are  exempt  from  duty ;  advantages  possessed  by  ship-owners 
and  builders  in  Great  Britain  over  the  same  class  in  the  United  States  ;  character  of 
officers  and  crews  of  English  vessels,  as  compared  with  those  of  the  United  States. 

What  measures  are  adopted  to  secure  efficiency  in  the  merchant  marine  service,  and 
in  what  regard  is  the  merchant  marine  held  as  a  means  of  national  defense  ? 

The  amount  of  subsidies  paid  to  various  lines  of  English  ocean  steamers  ? 

To  what  extent  aro  iron  superseding  wopden  vessels  1 


Mr.  Morse  to  Mr.  Fish. 

No.  47.]  UNITED  STATES  CONSULATE  GENERAL, 

London,  December  27,  1869. 

SIR  :  In  reply  to  a  series  of  questions  in  reference  to  the  interests  of  the  American 
mercantile  marine,  addressed  to  me,  through  the  Department  of  State,  by  Hon.  John 
Lynch,  "  Chairman  of  the  Committee  on  American  Navigation  Interests,"  and  Nathan 
Sargent,  esq.,  commissioner  of  customs,  I  have  the  honor  to  submit  the  following  re 
port.  Without  answering  in  their  order  each  interrogatory,  I  have,  for  the  economy 
of  time  and  space,  endeavored  to  respond  to  the  inquiries  of  each  gentleman  as  fully 
as  my  means  of  information  will  permit. 

In  answer  to  the  request  for  an  "  English  Report,"  showing  the  number,  tonnage, 
&c.,  of  the  vessels  belonging  to  the  British  navy,  and  which  of  them  were  built  in 
private,  and  which  in  government  dock-yards,  I  forward  herewith  the  official  quarterly 
"  Navy  List"  for  October.  This  "  Navy  List "  is  published  by  authority  of  the  govern 
ment,  and  gives  many  particulars  as  to  the  character  and  efficiency  of  all  service:iMo 
vessels  in  the  British  navy,  and  may  be  relied  on  for  accuracy.  But  there  is  no  oihVial 
or  unofficial  report  or  document  informing  us  how  many,  and  which  of  these  vessels 
were  built  in  government  and  which  in  private  yards,  and  I  had  to  procure  the  infor 
mation  from  other,  though  equally  reliable,  sources. 


214  NAVIGATION    INTERESTS. 

The  following  list  is  a  full  and  complete  record  of  all  tho  serviceable  vessels  of  every 
class,  including  transports,  or  troop  ships,  now  comprising  the  British  naval  vessels. 
It  gives  their  names,  tells  whether  they  are  screw,  paddle-wheel,  or  sailing;  the  ton 
nage,  horse-power  of  each,  and  tho  number  of  guns  carried  by  each  one.  It  states  of 
what  materials  each  is  constructed,  whether  of  wood  or  iron,  or  of  iron  frame  and  teak 
wood  planking,  (called  composite,)  and  which  of  them  are  armor-plated.  It  states 
which  of  them  were  built  in  government  and  which  in  private  dock  yards.  I  have  sep 
arated  those  built  in  government  from  those  built  in  private  yards,  first  giving  tho 
names  and  particulars  of  those  built  in  government,  followed  by  those  built  in  private 
yards.  The  following  list  was  furnished  rno  by  high  authority,  and  is  entirely  correct. 

(See  Appendix,  table.) 

The  whole  number  of  serviceable  fighting  ships  in  the  British  navy  is  three  hundred 
and  ninety-four.  Of  this  number  thirty  are  gun-boats  of  small  size  ;  two  hundred  and 
fifty-six  of  the  whole  number  were  built  in  government  dock-yards,  and  one  hundred 
and  thirty-eight  in  private  yards.  Only  nine  of  those  built  in  government  yards  are 
constructed  of  iron,  eight  are  composite,  and  all  tho  rest  were  built  of  wood.  Twelve  of 
these  government-built  wooden  ships  and  eight  of  the  nine  iron  ones  are  iron-clad  or 
armor-plated.  Of  the  one  hundred  and  thirty-eight  ships  built  in  private  yards  fifty- 
five  are  iron  ships  of  a  large  class,  twenty-five  of  which  are  armor-plated  ;  three  of  the 
wooden  ships  built  in  private  yards  are  also  armor-plated,  making  twenty-eight  iron 
clads  built  in  private  yards,  and  twenty  in  government  yards.  It  will  thus  be  seen 
that  there  are  now  in  the  British  navy  forty-eight  large,  sea-going  iron-clads.  Tho 
aggregate  tonnage  of  these  forty-eight  ships  is  170,000  tons.  They  average  3,541  tons 
each,  and  carry  653  guns.  Several  of  these  iron-clads  are  yet  incomplete,  but  ready  for 
sea.  The  forty-eight  will  cost  £16,000,000,  or  nearly  $78,000,000. 

Iron  war  ships  and  armor-plated  ships  are  of  recent  date,  and  when  the  admiralty 
decided  to  introduce  iron  ships  into  the  navy,  iron  steamers  and  sailing  ships  had  fo^r 
some  years  been  in  use  in  the  mercantile  marine,  and  these  several  private  yards,  well 
equipped  for  the  construction  of  iron  vessels  of  any  class,  whether  sailing  or  steam, 
while  yards  had  not  then  been  fitted  for  such  purposes,  and  could  not  readily  respond 
to  the  call  of  the  government  for  iron  war  ships,  even  if  it  were  the  policy  of  the  gov 
ernment  to  rely  on  its  own  yards  for  its  supply.  Although  some  of  the  government 
yards  are  now  equipped  for  building  iron  ships,' and  no  doubt  could  now  supply  all  tho 
wants  of  the  government,  unless  perhaps  in  cases  of  sudden  emergency,  yet  we  see  that 
only  nine  of  the  sixty-four  iron  ships  belonging  to  the  British  navy  were  built  in  gov 
ernment  yards,  and  of  the  thirty-three  iron  armor-plated  ships,  only  eight  were  built 
in  the  navy  yards  and  twenty-five  in  private  yards. 

There  are  now  building  fourteen  iron  armor-plated  ships  for  the  government,  all  of 
large  size.  Seven  of  these  iron-clads  are  building  in  government,  and  seven  in  private 
yards,  and  the  engines  for  all  these  ships  are  being  constructed  at  private  works,  and 
all  but  one  are  on  the  improved  expansion  plan  with  surface  condensers.  All  marine 
engines  of  any  importance,  required  for  the  British  navy,  are  made  at  the  works  of 
private  engine-builders.  Up  to  tho  year  1868,  Penn  &  Maudslay,  two  of  the  leading 
engine-builders,  whose  works  are  located  in  London,  built  nearly  all  the  engines  for 
government  ships,  whether  the  ships  were  built  in  private  or  government  yards.  Now, 
as  a  general  rule,  the  war  ships  built  for  the  government  in  tho  yards  of  Napier  or 
Laird  have  their  engines  built  also  in  the  yards  of  these  gentlemen.  Though  this  is 
not  always  the  case,  for  Peun  &  Maudslay  are  still  the  chief  builders  of  government 
engines.  Within  the  last  few  years,  Rowerdiill  &  Humphreys  have  built  occasionally. 
I  may  add  that  iron  armor-plated  war  steamers  have  frequently  been  and  continue  to 
be  built  in  the  private  yards  of  this  country  for  nearly  all  the'  maritime  nations  of 
Europe  except  France,  and  she  has  had  troop  ships  built  here,  and  some  of  her  largest 
and  best  merchant  steamers  are  Clyde-built. 

SUBSIDIZED  LINES  OF   MAIL  STEAMERS. 

I  have  procured  and  forwarded,  as  desired,  the  post  ofiico  reports  for  tho  last  ten 
years,  but  they  do  not  give  the  full  information  asked  for,  but  from  other  reliable 
sources  of  information,  I  find  the  existing  contracts  with  steamboat  companies  for  car 
rying  the  mails  to  be  as  follows : 

CONTRACT  WITH  THE  CUNARD  LINE. 

In  December,  1868,  a  contract  was  made  with  the  managers  of  the  Cunard  line  to 
carry  a  mail  twice  a  week  to  the  United  States,  every  Saturday  to  New  York,  and  every 
Tuesday  to  Boston,  for  £70,000  per  annum.  Under  this  contract  the  company  carries 
the  mails  on  the  outward  voyage  only.  This  contract  runs  to  tho  year  1876,  and  can. 
be  terminated  any  time  thereafter  on  giving  twelve  mouths'  notice. 


NAVIGATION   INTERESTS.  215 

CONTRACT  WITH  THE  INMAN  LINE. 

On  the  9th  of  March,  1869,  a  contract  was  made  with  William  Inman,  manager  of  tho 
Inman  line,  to  carry  one  mail  each  week  to  New  York,  for  £35,000  per  annum.  Like 
the  contract  with  the  Cunard  line,  tho  Inman  contract  can  bo  terminated  after  the 
year  1876,  on  giving  twelve  months'  notice. 

NORTH   GERMAN  LLOYD'S  LINE. 

In  December,  1868,  a  contract  was  made  with  the  North  German  Lloyd's  line  to 
carry  a  weekly  mail  from  Southampton  to  New  York  for  the  postage,  Is.  per  ounce  for 
letters,  3d.  per  pound  for  newspapers,  and  5d.  per  pound  for  books. 

TO  BERMUDA  AND  ST.  THOMAS. 

In  December,  1867,  a  contract  was  made  with  the  Cunards  to  carry  a  mail  every 
fourth  week  from  Halifax  to  Bermuda  and  St.  Thomas  for  £19,500  per  annum. 

BRAZIL,   ETC. 

In  June,  1868,  a  contract  was  made  with  the  Royal  Steam  Packet  Company  to  carry 
a  mail  once  a  month  from  Southampton  to  Brazil  and  tho  river  Plate,  touching  at 
Lisbon,  St.  Vincent,  (Cape  de  Verde, )Pernambuco,  Bahia,  Rio  de  Janeiro,  Montevideo, 
and  Buenos  Ay  res,  for  £33,500  per  annum.  This  contract  can  be  terminated  at  tho 
close  of  the  year  1874,  on  giving  twenty-four  months'  previous  notice. 

FROM  LIVERPOOL  TO  BUENOS  AYRES,  ETC. 

In  July,  1868,  a  contract  was  entered  into  with  the  "Liverpool,  Brazil,  and  River 
Plate  Steam  Navigation  Company,"  to  carry  a  mail  once  a  month  from  Liverpool  to 
Buenos  Ayres,  touching  at  Rio  do  Janeiro  and  Montevideo,  on  the  outward  voyage, 
and  at  Montevideo,  Rio  de  Janeiro,  and  Bahia,  on  the  homo  voyage,  for  the  postage,  at 
the  rate  of  2«.  Gd.  (60  cents)  per  ounce  on  letters,  newspapers,  '3d.  (6  cents)  per  pound,  and 
on  books,  5d.  (10  cents)  per  pound. 

LIVERPOOL  TO  MONTEVIDEO,  ETC. 

One  other  contract  was  made  with  the  "  Pacific  Steam  Navigation  Company "  to 
carry  a  mail  once  a  month  from  Liverpool  to  Montevideo,  touching  at  Bordeaux,  Lis 
bon,  Rio  de  Janeiro,  and  St.  Vincent,  for  the  postage  at  the  same  rates  as  those  last 
named. 

LIVERPOOL  TO  PUERTO  CABELLO. 

in  July,  1869,  an  agreement  was  made  with  the  "West  India  and  Pacific  Steamship 
Company,"  to  carry  a  mail  from  Liverpool,  on  the  5th  of  each  month,  to  Puerto 
Cabello,  touching  at  La  Guayra. 

LIVERPOOL  TO  TAMPICO,  ETC. 

From  Liverpool,  on  the  10th  of  each  month,  to  Tampico,  Port-au-Prince,  and  Vcra 
Cruz. 

LIVERPOOL  TO  SANTA  MARTHA. 

From  Liverpool,  on  the  20th  of  each  month,  to  Santa  Martha. 

FROM  FALMOUTH  TO  BUENOS  AYRES,  RIO  DE   JANEIRO  AND  MONTEVIDEO. 

During  the  present  year  a  contract  was  made  with  tho  "  London,  Belgium,  Brazil  and 
River  Plato  Royal  Mail  Steamship  Company  "  to  cariy  a  mail  from  Falmouth,  on  the 
3d  of  each  month,  to  Buenos  Ayres,  Rio  de  Janeiro,  and  Montevideo.  These  last  four 
postal  services  are  performed  for  tho  postage  money  received  on  letters,  newspapers, 
and  books,  at  2s.  Gd.  (60  cents)  per  ounce  for  letters,  6  cents  per  pound  on  newspapers, 
10  cents  per  pound  on  books. 

WEST  INDIES. 

In  June,  1868,  a  contract  was  entered  into  with  the  "  Royal  Mail  Steam  Packet  Com 
pany,"  to  carry  a  mail  from  Southampton  on  the  2d  and  17th  of  eack  month,  to  the 
Islands  of  Antigua,  Barbadoes,  Demerara,  Dominica,  Grenada,  Guadaloupe,  Havana, 


216  NAVIGATION   INTERESTS. 

Jacmel,  (Huyti,)  Jamaica,  Martinique,  Porto  Rico,  St.  Kitts,  St.  Lucia,  St.  Thomas,  St. 
Vincent,  Tobago,  and  to  Trinidad.  Also,  to  Aspinwall,  Carthagena,  Grey  Town,  Santa 
Martha,  Tampico,  and  Vera  Cruz,  on  the  continent.  For  performing  this  mail  service 
the  company  receive  £172,914  per  annum,  $830,362.  In  addition  to  this  sum  the  com 
pany  receive  £2,000  per  annum  for  landing  the  West  India  mails  at  Plymouth,  on  the 
return  voyage.  This  contract  can  he  terminated  in  1874,  on  giving  twenty-four  months' 
previous  notice. 

PANAMA  AND  THE  PACIFIC  COAST. 

A  contract  with  the  "  Pacific  Steam  Navigation  Company  n  was  made  in  July,  18G4, 
to  carry  a  mail  twice  a  mouth,  on  the  10th  and  25th  of  each  month,  from  Panama  to 
ports  on  the  Pacific  coast,  for  £18,250  per  annum.  This  contract  runs  to  1872,  when  it 
may  he  terminated,  011  giving  previous  notice. 

LOCAL  LINES   IN   WEST  INDIES. 

Contracts  with  two  local  lines  have  been  made,  one  to  carry  a  mail  four  times  a 
month  between  St.  Kitts,  Nevis,  and  Montserrat,  for  £490  per  annum,  and  one  twice  a 
month  between  St.  Thomas,  Puerto  Rico,  and  Havana,  for  £2,000  per  annum. 

WEST  COAST  OF  AFRICA. 

In  July,  1866,  a  contract  was  made  with  the  "African  Steamship  Company  "  to  carry 
a  mail  once  a  month  to  Madeira,  Teneriffe,  Bathurst,  Sierra  Leone,  Monrovia,  Cape 
Palmas,  Capo  Coast  Castle,  Oneva,  Jellah  Coffee,  Lagos,  Benin,  Bouny,  Old  Calabar, 
Camavoons,  and  Fernando  Po,  for  the  sum  of  £20,000  per  annum,  contract  terminable 
in  1872,  provided  twenty-four  months'  previous  notice  has  been  given. 

CAPE  OF  GOOD  HOPE. 

In  June,  1868,  a  contract  was  made  with  the  "Union  Steamship  Company"  to  carry 
a  mail  twice  a  month  to  the  Cape  of  Good  Hope,  touching  at  St.  Helena  and  Ascension, 
for  a  sum  equal  in  amount  to  the  Sea  and  British  inland  postage  on  the  mail  matter 
conveyed. 

TO  ALEXANDRIA,  SUEZ,  AND  INDIA. 

On  the  19th  of  November,  1863,  the  post  office  department  entered  into  a  contract 
with  the  "Peninsula and  Oriental  Steam  Navigation  Company"  to  convey  a  mail  once  a 
week  to  and  from  Southampton,  Gibraltar,  Malta,  and  Alexandria ;  and  between  Mar 
seilles  and  Alexandria,  and  between  Suez  and  Bombay. 

Also,  once  a  fortnight,  between  Suez  and  Calcutta,  Bombay  and  Hong  Kong,  Hong 
Kong  and  Shanghai,  Shanghai  and  Yokohama,  for  the  sum  of  £400,000  ($1,944,000)  per 
annum.  This  contract  expires  in  1880,  if  twenty-four  months'  previous  notice  has  been 
given. 

With  the  same  company  to  carry  a  mail  every  four  weeks  between  Point  de  Gallo 
and  Sidney,  for  £130,000,  ($631,800.) 

DOVER  AND  CALAIS. 

With  the  Southeastern  Railway  Company  for  a  daily  mail,  between  Dover  and 
Calais,  for  £6,000  per  annum. 

NUMBER  OF  SUBSIDIZED  LINES  AND  AMOUNT  OF  SUBSIDY. 

Here  are  twelve  lines  of  steamers  under  contract  for  carrying  the  majls,  for  which  they 
are  paid  an  annual  subsidy  of  £903,750,  or  $4,392,244,  and  four  other  important  lines 
running  to  the  West  Indies  and  South  and  Central  America,  subsidized  by  having 
granted  to  them  the  postage  on  all  the  mail  matter  they  convey. 

In  addition  to  the  contracts  above  specified,  contracts  have  been  made  for  a  mail  ser 
vice  between  Halifax  and  Newfoundland,  New  Orleans  and  Balize,  British  Honduras, 
and  between  New  York  and  Bahamas.  The  negotiations  of  these  contracts  have  been 
left  to  the  local  governments,  the  home  government  pledging  itself  to  pay  one-half  the 
cost  of  each  service. 

It  is  hardly  necessary  here  to  repeat  the  well-known  fact,  that  the  establishment  and 
support  of  these  transatlantic  lines  of  steamers,  and  the  local  lines  in  the  West  Indies 
and  along  the  Atlantic  and  Pacific  coasts  of  Central  and  South  America,  has  brought 
by  far  the  largest  part  of  the  trade  of  those  countries  to  this  side  of  the  Atlantic.  If 
wo  wish  to  extend  our  trade  with  these  countries,  we  must  offer  greater  facilities  for 
conducting  it,  and  not  oblige  traders  to  go  to  the  most  distant  markets,  because  the 
means  of  communicating  with  them  are  more  fre.quent,  regular,  and  rapid. 


NAVIGATION   INTERESTS.  217 

PRICE  OF  WOOD  AND  IRON  SHIPS  IN  GREAT  BRITAIN. 

On  tho  subject  of  the  value  of  now  wood  and  iroii  first-class  English  and  Scotch 
built  sea-going  steamers  and  sailing-ships,  much  depends  on  the  service  for  which  they 
are  intended,  the  materials  out  of  which  they  are  constructed,  the  standing  of  the 
builder,  and  the  character  of  the  outfits.  The  price  depends  on  these  several  points 
and  the  classification  or  standing  with  underwriters  on  the  nature  of  the  materials  and 
manner  of  construction.  I  have  conversed  with  ship-owners  and  builders  on  the  sub 
ject,  and  have  the  figures  of  some  of  them  in  writing.  From  one  of  the  most  reliable 
houses  in  London,  as  surveyors  and  valuers  of  shipping,  I  have  received  the  following 
statement  of  the  prices  of  wood  and  iron  sailing-ships  and  of  iron  steamers  for  tho 
years  I860  and  1869: 

SHIPS  BUILT  OF  WOOD,  1860. 

Classed  for  fourteen  years,  £  16  16s.  to  £  18  18s £  15 

Classed  for  thirteen  years,  £16  16s.  to  £17  17s 14          to  15 

Classed  for  ten  years,  £12  to  £13  10s 11          to  12 

Classed  for  nine  years,  £11  to  £12 10          to  11 

Classed  for  eight  years,  £10  to  £10  10s 9  10s.  to  10 

At  tho  above  prices  the  ships  will  have  their  bottoms  covered  with  yellow  metal  and 
bo  furnished  with  a  complete  East  India  outfit,  which  includes  a  double  suit  of  sails, 
spare  spars,  &c. 

The  best  colonial-built  ships  can  bo  bought  here  now  for  about  £7  ($34)  per  ton,  and 
second-hand  American  and  colonial-built  at  a  much  lower  rate. 

COMPOSITE  SHIPS. 

Composite  sailing-ships  and  steamers,  built  of  iron,  except  the  planking,  which  ia 
generally  of  teak-wood,  on  account  of  its  great  durability,  were  a  commercial  experi 
ment  in  1860.  They  have  proved  a  success,  and  are  much  approved  of  for  the  India 
and  China  trade,  especially  for  the  tea  trade.  They  are  iron  ships  in  all  respects 
except  their  planking.  Wood  is  used  for  the  outside  covering,  because  it  can  bo 
easily  coppered  or  yellow-metaled,  and  the  ship  or  steamer  thus  prevented  from 
becoming  foul  from  barnacles,  sea-weed,  &c.  I  am  not  aware  that  a  wood  bottom  is 
preferred  for  any  other  reason.  But  now  that  a  cheap  and  durable  remedy  is  said  to 
have  been  discovered  and  coming  into  use,  which  prevents  the  bottoms  of  iron  vessels 
from  fouling,  it  is  not  probable  that  composite  ships  will  form  a  much  larger  propor 
tion  of  the  mercantile  tonnage  than  they  do  at  the  present  time.  The  authority 
already  quoted  names  from  £13  to  £16  per  ton  as  the  average  price  of  fair  and  good 
composite  sailing-ships,  classed  for  fourteen,  fifteen,  and  sixteen  years,  ready  for  sea 
with  India  outfit. 

A  ship-owner  informed  me  that  he  had  built  two  composite  ships  the  present  year 
for  the  China  trade,  which  had  cost  him,  coppered,  with  India  outfit,  about  £17  per 
ton.  But  he  called  them  "fancy  ships,  and  unusually  expensive."  Into  one  of  theso 
ships  he  put  auxiliary  steam-power  at  an  additional  expense  of  about  £8,000,  which, 
with  latest  improved  engines,  mov^d  the  ship  through  the  water,  on  her  trial  trip,  at 
the  rate  of  about  eight  knots  per  hour,  on  only  nine  tons  of  coal  per  day.  Steam 
power  on  these  auxiliary  ships  is  used  only  on  going  into  and  out  of  port,  and  in 
calms  and  continuous  head  winds  and  bad  weather,  when  found  more  economical  or 
safe  than  to  depend  on  sails.  When  sails  only  are  used,  the  screw  is  hoisted  out  of 
water,  and  the  space  in  which  it  played  is  filled  up  with  a  piece  of  wood  fitted  for  tho 
purpose.  There  are  comparatively  but  few  composite  ships  built,  and  theso  are  gen 
erally  built  with  a  view  to  some  special  service. 

The  authority  heretofore  quoted,  and  several  ship-owners  and  builders  whom  I  have 
consulted  on  the  subject,  all  agree  that  the  price  per  ton  of  a  first-class  iron  sailing- 
ship,  with  India  outfit,  ranged,  in  the  year  1860,  from  £17  to  £18  per  ton.  But  such 
was  tho  demand  for  iron  steamers  from  the  years  1860  to  1864,  caused  in  part,  and 
very  largely,  too,  by  the  American  war,  that  tho  price  for  sailing-ships  was  run  up  to 
£20  and  £21  per  ton.  Since  1864,  the  price  has  gradually  fallen  to  from  £12  to  £14  10s. 
per  ton,  according  to  their  classification  and  stylo  of  finish.  Tho  classification 
depends  on  the  character  of  the  materials  used,  the  workmanship,  and,  to  somo 
extent,  on  tho  reputation  of  the  builder  and  the  place  where  built. 

A  first-class  iron  ship,  that  will  class  A  1  at  Lloyds  for  twenty  years,  can  now  be  built 
and  fitted  for  sea  for  less  money  than  the  best  English-built  wood  ship,  which,  when 
built  in  the  best  manner,  under  Lloyds'  survey,  can  never  be  classed  A  1  for  more 
than  fourteen  years.  The  iron  ship,  ordinarily,  will  cost  but  little  for  repairs,  and  at 
the  end  of  twenty  years  may  continue  on  in  tho  same  class  for  twenty  years  more, 
while  tho  wood  structure,  during  the  period  of  her  first  classing,  is  liable  to,  and  very 
often  does,  become  rotten  in  various  parts  of  her  hull,  making  extensive  and  expensive 


218  NAVIGATION   INTERESTS. 

repairs  a  necessity.  Slie  will  also  require  to  be  newly  coppered  about  every  third 
year.  Wood  ships  generally  depreciate  in  value  about  one-half  in  ten  years,  and  then 
pass  into  the  second,  and  on  to  the  third  class,  with  increased  expenses  for  repairs 
and  insurance,  while  her  earnings  are  less,  when  she  soon  disappears  from  the  records 
of  shipping.  The  iron  ship  of  the  same  age,  in  the  mean  time,  continues  on  in  her  A  1 
classification,  with  but  little  comparative  depreciation  in  value.  At  the  same  timo 
the  iron  ship  has  a  preference  over  her  wooden  competitor  of  from  three  to  seven 
shillings  sterling  per  ton  (the  amount  of  preference  depending  on  the  nature  of  the 
cargo)  in  the  leading  freight  markets,  because  both  ship  and  cargo  insure  for  less, 
and  she  delivers  her  cargo  in  better  condition. 

Iron  ships  now  take  the  most  valuable  cargoes,  when  such  ships  can  bo  obtained, 
and  the  less  valuable  is  left  for  the  wooden  ship,  such  as  coals,  chalk,  lumber,  guano, 
jute,  seeds,  rice,  and  bulky  raw  material  of  inconsiderable  comparative  value.  On 
cargoes  of  low  value  the  insurance  on  the  ship  is  higher,  because  in  case  of  such  disas 
ters  as  are  brought  under  general  average,  cargoes  of  low  value  contribute  less  to 
repairs  than  more  valuable  ones,  and  the  loss  falls  more  heavily  on  the  ship  than  it 
would  had  she  been  loaded  with  a  cargo  of  greater  value. 

The  preference  given  in  this  country  to  iron  sailing-ships  for  the  foreign  freighting 
business  is  clearly  shown  by  the  character  of  the  tonnage  annually  constructed  for  such 
service.  During  the  year  1668  five  hundred  and  ninety-six  wooden  sailing  vessels  of 
every  description  were  built  in  this  country.  The  aggregate  tonnage  of  these  vessels 
was  87,151  tons,  giving  an  average  of  146  tons  each.  One  hundred  and  one  of  these 
vessels  were  of  300  tons  burden  and  upward,  very  few  reaching  400  tons.  They  were 
principally  small,  for  lishing  aud  coasting,  and  the  largest  ones  for  some  special  trade, 
and  were  built  in  old  yards  in  sections  of  the  country  where  iron  ships  are  not  usually 
built.  During  the  same  time,  the  year  1868,  one  hundred  and  sixty -two  iron  sailing- 
ships  were  built  in  Great  Britain,  the  entire  tonnage  of  which  was '131,731  tons,  aver 
aging  813  tons  each.  At  the  same  time  twenty-nine  composite  sailing-ships  were  built, 
the  united  tonnage  of  which  was  18,805  tons,  and  averaging  700  tons  each.  There  are 
one  hundred  and  ninety-one  large  sea-going  iron  and  composite  sailing  ships  built  in 
this  country  in  one  year,  the  aggregate  tonnage  of  which  was  150,536  tons ;  while  dur 
ing  the  same  period  very  few,  if  any,  "  deep-sea"  wooden  ships  were  built  which 
come  up  to  the  average  size  of  one  of  these  one  hundred  and  ninety-one  iron  and  com 
posite  ships.  The  result  of  the  operations  of  the  present  year  will  no  doubt  show  a 
still  wider  difference  in  favor  of  iron  ships. 

In  addition  to  the  sailing  vessels  above  particularized,  there  were  built  in  the  British 
Possessions  during  the  same  year  seven  hundred  and  one  wood  sailing  vessels,  tho 
tonnage  of  which  was  141,313  tons,  averaging  201  tons  each;  five  hundred  and  five 
of  these  vessels  were  built  in  the  BYitish  North  American  Possessions,  the  tonnage 
of  which  was  129,720  tons,  averaging  250£  each. 

If  any  stronger  facts  are  necessary  to  show  of  what  material  deep-sea  vessels  must 
hereafter  be  constructed  to  command  a  participation  in  the  carrying  trade  of  the  world 
on  equal  terms,  they  may  be  found  in  the  character  of  the-  steam  vessels  built  in  tho 
United  Kingdom  during  the  year  1868.  In  this  year  only  thirty-nine  wooden  steamers 
were  built,  altogether  only  1,134  tons,  and  averaging  but  29  tons  each.  They  were 
mere  launches,  river  yachts,  and  perhaps  three  or  four  small  tugs,  not  a  freight  or  pas 
senger  steamer  amony  them,  showing  that  iron  only  is  now  used  in  this  country  for  tho 
construction  of  freight  and  passenger  steamers. 

Continuing  our  analysis  of  ship-building  in  this  country  for  the  past  year,  it  is  shown 
that  there  were  built  in  private  yards,  and  registered  as  British  vessels,  one  handled  and 
ninety-three  mercantile  iron  steamers,  the  aggregate  tonnage  of  which  was  77,376  tons, 
and  averaging  over  400  tons  each.  Many  of  them  were  large  first-class  ocean  steam 
ers,  for  passenger  and  freighting  service.  During  the  same  year  only  five  composite 
steamers  were  built.  By  this  official  record,  we  see  the  time  has  already  come  when 
not  a  solitary  wooden  sea-going  steamer  is  built  in  this  country,  and  probably  no  large 
first-class  wooden  sailing-ship.  Many  of  these  large  steamers  have  but  moderate  pas 
senger  accommodations,  and  were  built  mainly  for  the  purpose  of  carrying  cargo. 

Notwithstanding  the  great  revelation  which  iron  and  steam  have  so  rapidly  intro 
duced  into  the  commercial  marine  of  Great  Britain,  the  success  of  the  Suez  canal,  it  is 
believed,  will  necessitate  further  changes.  The  completion  of  this  great  work  lessens 
by  one-half  the  distance  to  India,  and  by  thousands  of  miles  the  passage  to  China, 
Australia,  and  all  ports  east  of  the  Red  Sea.  The  questions  which  have  thus  been 
forced  on  the  consideration  of  commercial  men  here  are  :  Will  not  the  most  of  the  trade 
which  has  heretofore  gone  round  the  capes  pass  through  the  canal,  and  be  carried  on 
mainly  by  steamers,  instead  of  so  largely  by  sailing-ships,  as  is  now  done?  Looking 
forward  to  such  results,  some  merchants  are  now  hesitating  about  the  wisdom  of  add 
ing  further  to  their  sailing-ships  for  the  eastern  trade,  while  a  few  others,  I  learn,  have 
already  begun  steamers  on  a  uefr  model,  with  greater  length,  greater  breadth  of  beam, 
and  less  depth  of  hold  than  the  old  models,  for  the  same  trade  via  the  Suez  eanjal.  It  is 
very  probable  that  this  now  route,  to  all  the  countries  lying  beyVmd  the  Red  Sea  as  far 


NAVIGATION  INTERESTS.  219 

as  Australia,  is  destined  to  bring  about  great  and  rapid  changes  in  the  currents  of  trade- 
and  commerce  to  those  countries.  Instead  of  the  long,  slow  route  over  which  their 
trade  has  heretofore  been  conducted,  and  until  recently  almost  entirely  by  sailing-ves 
sels,  this  canal  will  open  a  short  route,  and  place  the  most  valuable  and  probably  the 
principal  part  of  the  trade  at  the  command  of  steamers  better  adapted  for  carrying 
cargo  than  any  heretofore  constructed.  Should  these  anticipations  be  realized,  a  large 
amount  of  sailing  tonnage  will  be  released,  to  seek  employment  in  other  channels  of 
trade.  Such  an  amount  of  sailing  tannage  thrown  upon  freight  markets  already  over 
stocked  with  ships  seeking  business  will  cause  a  greater  reduction  in  the  profi ts  of  capi 
tal  invested  in  this  kind  of  property.  I  think  it  is  a  conceded  fact  among  commercial 
men  in  the  United  States  that  capital  invested  in  sailing-ships,  taken  as  a  whole,  has 
f6r  the  last  six  or  eight  years  been  less  remunerative  by  at  least  tweuty  per  cent,  than 
for  a  series  of  years  prior  to  the  time  when  this  new  revolution  in  ocean  commerce, 
caused  by  iron  and  steam,  had  shown  its  strength  and  power  to  ride.  Such,  also,  is  tho 
opinion  of  the  same  class  of  men  in  thte  country.  But  in  England  it  is  not  so  much 
felt,  because  capitalists  are  content  with  a  lower  rate  of  interest  on  their  investments. 
Yet  in  effecting  this  great  change  in  the  commerce  of  the  seas  from  wood  sailing- 
ships  to  iron  and  steam,  the  loss  in  the  depreciation  of  ship  property,  as  well  as  tho 
commercial  advantages,  will  be  greater  to  this  country  than  to  any  other,  and  probably 
as  great  as  to  all  others,  because  she  now  has  a  larger  number  of  large  sea-going 
wooden  ships  seeking  business  than  all  other  nations  combined,  which  their  owners 
would  now  be  glad  to  dispose  of  at  a  price  very  far  below  the  value  which  would  have 
been  set  on  tonnage  of  the  same  amount,  character,  and  age,  six  or  eight  years  ago. 
Since  the  year  1854,  the  tonnage  of  Great  Britain  has  increased  fifty  per  cent.,  while  in 
nearly  all  other  European  countries  tonnage  has  actually  diminished  or  remained  nearly 
stationary.  The  United  Kingdom  alone  had  last  year  8,168  vessels,  large  and  small,  en- 

faged  in'  an  exclusively  foreign  trade.  The  tonnage  of  these  vessels  amounted  to 
,265,349  tons,  and  they  averaged  522  tons  each ;  862  of  these  vessels  were  steamers,  the 
united  measurement  of  which  was  619,199  tons,  which  would  do  the  work  of  2,000,000 
tons  of  sailing-vessels,  and  the  proportion  of  steam  tonnage  is  rapidly  increasing  from 
year  to  year.  In  proportion  as  steamers  enter  into  the  carrying  trade,  the  tonnago 
necessary  to  carry  on  that  trade  will  diminish,  because  steamers  on  the  best  models  and 
most  improved  engines  will  perform  about  three  times  the  labor  of  sailing-vessels. 

While  there  is  no  doubt  but  that  for  certain  branches  of  the  carrying  trade  wood 
ships  will  continue  to  bo  built  for  a  time  and  used,  the  transformation  irom  wood  to 
iron  and  steam  is  sure  to  go  on  until  the  principal  part  of  the  commerce  between  nations 
will  be  carried  on  through  their  agencies,  and  the  adoption  of  any  measures,  public  or 
private,  intended  to  promote  the  restoration  of  our  commerce,  which  look  to  anything 
short  of  the  change,  of  at  least  that  portion  of  our  mercantile  marine  required  for  inter 
national  commerce,  from  wood  to  iron  and  steam,  will  surely  fail  of  their  object.  It  is 
not  temporary  relief  to  "tide  over"  temporary  disaster  that  is  required  to  meet  tho 
necessities  which  are  upon  us;  but  change,  radical  change  in  structure,  to  effect  which 
government  and  people  must  act  in  harmony ;  the  government  to  extend  all  proper 
encouragement  and  inducements  for  commercial  men  to  meet  promptly  the  emergency 
that  is  forced  upon  us,  and  tho  merchant  and  ship-builder  to  set  about  in  good  earnest 
the  reconstruction  of  our  mercantile  fleets.  Our  remedy  is  not  to  be  found  in  a  restora 
tion  of  tho  past ;  that  era  of  ocean  commerce  is  fast  passing  away,  and  a  new  and  more 
progressive  one  has  overtaken  us.  We  must  move  on  with  it  and  deal  with  facts  and 
events  as  they  meet  us  to-day  or  give  up  all  idea  of  recovering  our  old  ocean  supremacy, 
retire  substantially  within  our  coast  lines,  and  yield  this  great  and  noble  field  of  enter 
prise,  once  so  gallantly  contested  and  won,  to  be  controlled  and  monopolized  by  other 
heads  and  hands. 

I  am  asked  to  state  "  what  regulations  have  been  adopted  by  the  British  government 
to  ascertain  the  amount  of  materials  entering  into  the  construction  of  ships  which  aro 
exempt  from  duty  ? " 

No  regulations  of  such  a  character  aro  required,  because  there  is  no  duty  assessed  on 
any  article  that  goes  into  the  construction  of  vessels  or  steamers  of  any  kind.  Not  only 
are  all  such  materials  free,  but  all  vessels  bound  on  foreign  voyages  are  permitted  to 
take  a  supply  of  such  dutiable  articles  as  may  be  needed  for  the  ship's  use  from  bonded 
warehouses  iree  of  duty. 

"What  advantages  are  possessed  by  ship-builders  and  ship-owners  in  Great  Britain, 
over  the  same  class  in  the  United  States  ?  " 

Here  ocean  commerce  is  held  to  be  one  of  the  great  branches  of  national  industry 
and  sources  of  wealth,  and  ranks  with  manufactures  and  agriculture.  It  is  tho  pride  of 
a  commercial  people,  and  the  whole  nation  is  united  in  watching  over  it,  and  in  trying 
to  gain  for  it  every  advantage  that  sagacity,  wealth,  talent,  mechanical  skill,  science, 
and  ample  protection  on  every  sea  can  command. 

The  Board  of  Trade  is  a  department  of  the  government,  and  is  always  in  charge  of  able 
and  experienced  men,  who  have  been  long  in  its  employ,  and  has  tho  commercial 
marine  under  its  special  care. 


220  NAVIGATION   INTERESTS. 

The  merchant  shipping  act  extends  legal  protection  in  a  thousand  ways,  whenever 
needed,  to  ship,  cargo,  ami  sailor.  This  important  law  is  often  amended  or  revised  with 
great  care  and  labor,  as  a  wider  experience  and  a  change  of  circumstances  or  new  features 
appear  to  make  revisions  desirable.  The  latest  revision  was  reported  at  the  last  session 
of  Parliament,  and  will,  no  doubt,  after  some  amendments,  be  passed  into  law  at  the 
next  coming  session.  Again,  the  consular  corps  of  this  country  are  generally  trained 
men.  They  are  selected  for  their  supposed  fitness  for  the  places  they  are  wanted  to  fill, 
and  the  study  of  how  best  to  extend  and  secure  British  trade  and  commerce  is  made 
one  of  their  chief  studies.  No  nation  is  so  watchful  over  everything  that  affects  its 
trade  and  commerce  as  the  English  nation,  and  the  whole  nation  is  reaping  the  benefit 
of  this  care  and  vigilance,  constantly  exercised  in  every  available  manner. 

The  preparation  of  a  yard,  buildings,  machinery,  &c.,  for  the  construction  of  iron 
vessels,  requires  a  much  greater  outlay  of  capital  than  what  is  necessary  for  building 
vessels  of  wood.  But  capital  has  always  been  ready  to  open  as  many  of  these  expen 
sive  yards  as  the  demand  for  ships  required.  It  is  said  the  yard  belonging  to  tho 
Thames  Iron  Ship-building  Company  cost  half  a  million  sterling,  nearly  $2,500,000  in 
gold.  The  Minotaur,  one  of  the  largest  armor-plated  ships  in  the  British  navy,  was 
built  there.  It  has  within  its  limits  two  dry-docks,  built  of  stone,  of  a  capacity  suffi 
cient  to  receive  ships  of  the  largest  class,  the  heaviest  rolling  machinery,  forging,  plan 
ing  and  slotting  machines,  iron  spar-yard,  and,  in  fact,  every  convenience  necessary  for 
constructing  and  completing  five  or  six  large  ships,  steam  or  sailing,  at  the  same  time. 
There  are  several  yards  similar  in  character  on  the  Thames,  several  on  the  Mersey, 
several  in  the  north  of  England,  and  a  much  larger  number  on  the  Clyde  than  in  any 
other  locality.  With  this  constant  national  attention  in  every  necessary  form,  these- 
many  large  well  organized  and  equipped  yards  in  complete  readiness  for  every  depart 
ment  of  iron  ship-building,  with  an  abundance  of  native  iron  and  coal  delivered  in 
them  at  low  rates,  and  everything  free  from  taxation,  it  will  be  perceived  that  ship 
builders  and  owners  in  Great  Britain  have  already  gained  advantages  over  us  which 
only  time,  close  and  careful  attention,  all  proper  encouragement,  and  a  full  determin 
ation  to  succeed  will  enable  us  to  reach.  Besides  transforming  the  vast  mercantile 
fleet  of  this  country  from  wood  to  iron  and  steam,  more  or  less  mercantile  steamers, 
sailing-ships,  and  ships  of  war  are  continually  in  progress  of  construction  for  the  mari 
time  nations  of  Europe,  China,  Japan,  and  the  British  possessions. 

The  geographical  position  of  England  and  the  position  held  by  her  in  relation  to  the 
trade,  capital,  and  commercial  enterprises  of  Europe  and  the  whole  Eastern  hemi 
sphere,  is  of  such  a  controlling  character  as  naturally  to  conduct  a  large  portion  of  the 
trade  of  those  countries  to  her.  Ten  years  ago  much  of  this  trade  was  done  by  Amer 
ican  ships  which  were  chartered  by  English  merchants,  but  English  iron  and  composite 
ships  now  take  the  most  profitable  part  of  this  trade  ;  and  although  American  ships  still 
get  a  portion  of  the  second-class  business,  the  number  thus  employed  is  fast  dimin 
ishing. 

The  labor  of  all  grades  and  classes  of  artisans  employed  in  the  construction  of  ships 
in  England  and  Scotland  is  cheaper  than  in  the  United  States,  ranging  in  London  from 
As.  to  7s.  6d.  per  day ;  on  the  Clyde  about  Is.  less  per  day,  and  in  the  north  of  England 
still  lower.  But  this  does  not  afford  the  English  builder  much  if  any- ad  vantage,  be 
cause  in  America  mechanics  perform  more  labor  in  a  given  time  than  the  same  class  of 
•workmen  do  in  this  country. 

"  Character  of  officers  and  crews  of  English  vessels  as  compared  with  those  of  tho 
United  States." 

There  is  an  acknowledged  difference,  in  favor  of  the  American  officer,  in  the  prepar 
atory  education  of  American  and  English  ship-masters.  While  the  American  is  as 
good  a  seaman,  he  is  to  a  certain  extent  also  a  merchant.  He  is  very  frequently  a  part 
owner  in  the  ship  he  commands,  and  when  abroad  seeking  business  is  to  a  great  ex 
tent  intrusted  by  the  other  owners  with  the  general  management  of  the  ship  and  busi 
ness  connected  with  her,  such  as  looking  up  business,  deciding  on  what  offers  to  ac 
cept,  and  protecting  her  interests  in  all  ways.  The  English  ship-master  is  rarely  a 
part  owner,  or  intrusted  with  any  such  responsibilities.  He  is  generally  a  good  sea 
man  and  obeys  the  instructions  laid  down  for  his  guidance.  His  duty  is  to  sail  tho 
ship,  keep  her  in  good  order,  and  deliver  cargoes  in  good  condition.  The  business  is 
entirely  in  the  hands  of  the  owners  and  ship-brokers.  As  a  general  rule  American 
ship-masters  make  greater  dispatch,  sail  their  ships  with  a  less  number  of  men,  feed 
them  better,  and  their  port  charges  are  less.  Before  an  English  master  can  take 
charge  of  a  ship,  he  has  to  pass  a  rather  rigid  examination  before  a  board  of  examin 
ers  appointed  by  the  Board  of  Trade,  and  receive  a  certificate  from  them  of  compe 
tency  and  good  character.  For  any  misconduct  or  incompetency  as  master,  this  cer 
tificate  may  be  suspended  or  taken  from  him.  It  is  said  the  rigid  enforcement  of  this 
law  has  produced  a  decided  reform  in  the  service. 

A  majority  of  the  seamen  in  our  mercantile  service  are  foreigners.  We  have  no 
licensed  shipping  officers  and  no  provisions  of  law  for  their  protection  until  they  sign 
tiio  shipping  articles  and  go  on  board  ship.  No  certificates  of  competency  as  seamen 


NAVIGATION   INTERESTS.  221 

and  of  good  conduct  are  given  them  on  their  discharge,  and  they  are  left  while  in  port 
to  the  tender  mercies  of  landlords  and  shipping-masters  and  their  runners.  They  are 
frequently  robhed  of  the  proceeds  of  their  last  voyage,  and  their  advance  wages  for 
the  next,  and  delivered  aboard  ship  by  those  who  control  them,  destitute  and  help 
less,  like  any  marketable  commodity.  In  all  these  respects  the  English  sailor  is  care 
fully  protected  by  law  and  the  constant  watchfulness  of  government  officials.  In  the 
leading  ports  he  has,  when  in  them,  a  good,  well-regulated  boarding-house  to  go  to, 
with  books,  papers,  amusements,  savings  banks,  medical  attendance,  &c.,  forming  a 
part  of  the  establishment,  and,  what  is  perhaps  of  more  importance,  shipping  officers 
licensed  and  controlled  by  the  government.  At  these  government  shipping  offices  all 
seamen  for  the  British  mercantile  service  musfbo  shipped.  They  have,  before  they  can 
bo  shipped,  to  produce  their  recommendations  from  the  captains  of  the  last  ships  on 
which  they  served,  and  to  the  shipping  office  pay  the  small  fee  of  one  shilling, 
(twenty-five  cents,)  and  it  is  made  unlawful  to  exact  any  larger  sum.  I  went  over 
this  subject  with  some  care  in  a  dispatch  to  the  Department  of  State,  dated  May  12, 
1806,  and  numbered  375.  This  dispatch  was  called  for  and  published,  with  another  on 
the  subject  of  commerce,  by  the  fortieth  Congress,  second  session,  Executive  Document 
No.  283,  and  may  bo  found  on  page  22  ot  this  document.  As  I  have  not  time  to 
co  over  the  question  in  detail  before  this  paper  ought  to  be  sent  forward,  now  too 
long  delayed  by  illness  and  pressing  official  duties,  I  must  respectfully  refer  the  hon 
orable  committee  and  the.Cominissioner  of  Customs  to  that  paper  for  further  informa 
tion  on  the  subject.  The  revised  merchant  shipping  act,  which  will  come  before  tho 
next  session  of  Parliament  for  adoption,  contains  a  clause  permitting  foreign  ships  to 
enjoy  the  benefits  of  these  government  shipping  offices  in  English  ports.  This  will  bo 
an  excellent  thing  for  American  ships  and  seamen  in  British  ports,  and  all  masters 
should  be  compelled  to  ship  such  men  as  they  may  want  through  these  licensed  ship 
ping  offices,  instead  of  through  irresponsible  private  shipping  offices,  on  which  foreign 
ships  in  British  ports  now  depend,  and  where  sailors  are  so  often  deceived,  robbed,  and 
ill-treated.  It  is  to  be  hoped  that  some  efficient  measures  will  soon  be  established  by 
law  to  give  American  and  foreign  seamen  an  equally  good  protection  within  the  limits 
of  the  United  States. 

The  establishment  of  the  coast  guard  corps  of  mariners,  and  navy  pensions,  are  the 
chief  inducements  to  encourage  seamen  to  enter  the  government  service  when  called 
for.  For  more  full  information  on  this  branch  of  their  inquiry,  I  must  again  respect 
fully  ask  to  refer  the  committee  to  the  published  dispatch  (No.  375)  heretofore  men 
tioned.  I  will  investigate  this  question  further,  and  if  I  find  any  additional  facts 
worth  reporting  I  will  communicate  them  hereafter. 

French  Lloyds  is  more  favorable  to  American  ships  than  tho  English,  because  tho 
construction  of  American  ships  conforms  more  nearly  to  the  surveys  and  specifications 
laid  down  by  French  Lloyds.  No  American-built  ship,  whether  English-owned  or 
otherwise,  can  be  brought  within  the  requirements  of  English  Lloyds,  yet  American 
ships  can  bo  classed  as  A  1  there,  by  having  the  letter  F  placed  against  them,  signify 
ing  foreign  built. 

There  are  no  fixed  and  established  "  printed  rates  of  wages  paid  English  seamen, 
firemen,  and  engineers  "  in  the  mercantile  service.  Such  wages  fluctuate  according  to 
supply  and  demand.  Tho  rates  of  wages  of  all  persons  serving  in  the  navy,  from  sea 
men  upward,  are  established  and  may  bo  found  printed  in  the  "  Navy  List,"  two  copies 
of  which  I  herewith  forward.  I  think  quite  full  answers  to  the  inquiries  put  to  mo 
will  be  found  embodied  in  this  paper ;  but  if  any  point  has  been  overlooked,  or  any 
further  information  from  me  desired,  I  will  endeavor  to  supply  such  omissions  on 
further  calls,  with  as  little  delay  as  practicable. 

I  have  the  honor  to  be  your  obedient  servant, 

F.  H.  MORSE,  Consul  General. 

Hon.  HAMILTON  FISH, 

Secretary  of  State. 

P.  S. — I  will  make  the  price  of  iron  steamers  tho  subject  of  another  communication, 
I  hope,  by  next  post. 


A  1. 

UNITED  STATES  CONSULATE  GENERAL, 

London,  January  15,  1S70. 

DEAR  SIR  :  In  answer  to  your  inquiry  in  regard  to  composite  vessels,  I  would  say 
they  have  only  one  advantage  over  iron,  which  is  more  than  overcome  by  several  dis 
advantages,  and  the  one  advantage  I  feel  quite  confident  is  only  temporary.  It  is,  they 
can  be  easily  coppered  and  thus  kept  clean  longer  without  docking  than  an  iron  ship 
with  the  ordinary  coating  on  her  bottom.  But  this  is  not  found  from  experience  of 


222  NAVIGATION   INTERESTS. 

sufficient  advantage  to  give  them  a  preference  over  iron.  The  first  cost  of  the  compo 
site  vessel  is  greater  than  if  built  of  iron.  The  wood  bottom  wears  out  quicker,  and 
must  be  replaced  with  new  at  heavy  expense.  Then  there  is  the  additional  outlay  for 
sheathing  with  copper,  or  yellow  metal,  which  must  be  renewed  every  two  or  three 
years.  The  iron  ship  had  to  be  docked  and  scraped,  or  washed  down  as  her  bottom  be 
comes  foul,  but  a  cheap  coating,  put  on  with  a  brush,  like  paint,  is  coining  into  use  here, 
which  it  is  said  after  trial  keeps  the  bottom  more  free  from  sea-weed  and  barnacles 
than  copper.  This  coating  has  to  be  renewed  about  once  in  fifteen  or  eighteen  months. 

You  will  bear  in  mind  that  a  composite  vessel  is  built  entirely  of  iron,  except  that 
the  planking  is  of  wood,  secured  to  the  iron  frame  by  through  bolts  and  nuts  screwed 
on  to  their  inside  ends,  and  by  washers  and  rivets.  This  planking,  on  the  iron  plating 
of  an  iron  frame  is  the  most  simple  part  of  the  structure,  and  when  the  machinery  is 
provided  for  the  preparation  of  the  other  parts  of  the  vessel,  and  the  frame  up,  com 
plete  in  all  its  parts,  except  planking  or  plating,  the  difficulty  is  over,  and  putting  on 
the  outside  covering  becomes  a  very  simple  and  easy  matter.  Composite,  though  ex 
cellent  vessels,  are  not  gaining  in  this  country  anything  like  the  rapidity  that  iron  is. 
I  have  not  yet  obtained  full  statistics  for  the  year  just  closed,  but  I  think  it  will  be 
found  that  t  he  number  of  iron  ships  over  composite,  Avill  be  comparatively  greater  than 
the  year  before  last,  which  shows  that  the  experience  of  persons  engaged  in  maritime 
commerce  is  setting  their  judgments  in  favor  of  iron  ships. 

It  must  be  evident  to  all  who  have  given  any  thought  to  the  subject  that  we  cannot 
expect  a  revival  of  our  shipping  interest  without  some  measures  of  relief  and  en 
couragement  from  government;  in  regard  to  the  mode  of  applying  which,  men  differ 
according  to  the  standpoint  from  which  they  view  the  subject.  If  the  object  bo 
merely  to  possess  iron  ships  and  steamers,  without  any  other  object  in  view,  no  matter 
where  built,  the  way  is  easy  to  gain  such  possessions.  Open  the  door  and  admit  a 
foreign  supply.  But  if  nothing  else  is  done,  the  certain  effect  of.  such  a  policy  will  be, 
as  long  as  it  may  be  continued,  to  prevent  the  establishment  of  iron  ship-building 
yards  within  our  own  country.  The  object  should  be,  not  merely  to  possess,  but  also 
and  chiefly  to  create  facilities  and  encouragement  for  opening  yards  and  constructing 
iron  steamers  and  sailing  ships  on  our  own  soil.  It  is,  I  think,  an  admitted  fact  that 
there  is  now  more  tonnage  at  the  command  of  merchants  who  have  freights  to  offer 
than  is,  in  the  present  condition  of  trade,  necessary  to  do  the  carrying  trade  of  tho 
•world ;  and  therefore  capital  invested  in  sailing  ships  does  not  now,  taken  as  a  whole, 
pay  well.  It  is  true  that  some  steani  lines  make  large  dividends,  and  some  sailing 
ships  kept  in  certain  trades  are  doing  a  fair  business,  but,  taken  as  a  whole,  the  ship 
ping  interest  has  not  been  for  the  last  few  years  a  remunerating  business. 

If  this  view  be  correct,  and  the  iron  ship-builders  could  have/ree  materials  and  could 
put  a  ship  afloat  at  as  low  a  price  as  it  can  be  done  in  Great  Britain,  I  should  not  look 
for  an  immediate  and  general  revival  of  our  shipping  interests,  especially  for  gen 
eral  freighting  service.  A  few  yards  would  probably  be  started,  and  ships  and  steamers 
be  built  for  special  service.  Government  could  also  greatly  eneourage  iron  ship-build 
ing  by  giving  a  liberal  subsidy  to  a  few  leading  lines  of  postal  steamers,  on  the  express 
condition  that  all  the  regular  steamers  on  the  lines  should  be  either  iron  or  composite 
steamers  of  the  highest  class,  and  at  least  one-half  or  more  of  the  number  on  each 
line  should  be  built  in  the  United  States.  The  great  end  to  be  kept  in  view  and  gained 
should  be  the  development,  to  the  highest  state  of  perfection,  the  art  of  iron  ship 
building  among  ourselves,  and  free  us  from  dependence  on  foreign  countries  for  our 
mercantile  marine  and  means  of  transport,  and  give  us  facilities  for  building  the  most 
efficient  sea-going  sliips-of-war  in  time  of  need.  Any  measures  which  look  only  to  the 
increase  of  our  mercantile  marine  by  the  purchase  of  foreign-built  ships  will  render 
no  aid  in  placing  us  in  such  an  independent  position,  but  will  tend  rather  to  hold  us 
back  from  it. 

I  forward  Avith  this  note  a  letter  from  Suuderland,  in  the  north  of  England,  where 
the  largest  number  of  the  wood-ships  built  in  this  country  are  constructed.  This  will 

five  you  the  price  of  steamers,  sailing-ships,  and  the  rate  of  wages  in  that  part  of  tho 
ingdom.  I  also  send  a  list  of  ships,  over  a  certain  size,  built  there  during  the  year 
1869.  You  will  notice  only  six  wooden  sailing  ships  on  tho  list,  and  not  one  of  them 
comes  up  to  the  average  of  the  whole  number  of  iron  sailing  ships  built  in  the  United 
Kingdom  during  the  year  1868.  And  what  is  more  discouraging  for  wooden  ships,  the 
writer  says  in  a  letter  to  me,  dated  30th  December,  1809, 

"A  great  many  wooden  vessels  that  were  finished  last  year  (1868)  are  still  lying  un 
sold,  as  they  have  gone  off  very  slowly  this  year,  while  on  the  contrary  a  great  many 
iron  vessels  have  been  contracted;  for  in  fact,  nearly  all  the  iron  vessels  that  have  been 
built  have  been  invariably  sold  before  they  were  finished." 

If  I  can  do  anything  more  here  to  aid  the  object  for  which  you  are  laboring  pleaso 
inform  me,  and  it  shall  be  promptly  and  cheerfully  done. 

I  have  been  relying  on  one  of  the  principal  London  ship-building  firms,  for  a  state- 


NAVIGATION  INTERESTS. 


223 


mont  in  reference  to  ship-building  on  tlio  Thames,  similar  to  the  one  from  Sunderland, 
but  it  has  not  yet  been  sent  to  me.    On  its  receipt,  I  will  forward  it  immediately. 
I  am,  sir,  your  obedient  servant, 

.  F.  W.  MORSE, 

Consul  General. 
Hon.  JOHN  LYNCH,  If.  C. 


B  1. 

SUNDERLAND,  January  3, 1870. 

DEAR  SIR:  Wa  now  have  tho  great  pleasure  of  handing  you  copy  of  a  letter  received 
by  ua  this  naorniug  from  one  of  our  eminent  ship-builders,  in  which  you  will  iiud  a 
more  detailed  account  of  wages,  and  also  in  prices  of  iron  sailing  vessels  and  cargo 
boats,  as  follows : 

"  Replying  to  yours  of  9th  instant,  wo  have  pleasure  in  furnishing  you  with  tho  fol 
lowing  particulars  for  your  American  friends,  viz  : 

"  Tho  rate  of  wages  paid  to  iron  shipwrights  arid  artizans  in  several  years : 


rj 

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Z+ 

3 

£3 

& 

i 

5 

1 

2 

6 

B 
P 

6 

i 

8.  d. 

s.  d. 

s.  d. 

s.  d. 

*.  d. 

s.  d. 

s.  d. 

IPCO  

4    8 

4    2 

4    0 

4    0 

3    0 

5    0 

4    0 

ISO  1-2 

5    0 

4    6 

4    g 

5    0 

3    6 

5    0 

4    Q 

1863  

5    0 

5    0 

4    8 

5    0 

3    6 

5    0 

5    0 

18G4 

5    6 

5    6 

5    0 

5    0 

3    4 

5    G 

r>    0 

1869 

4    G 

4    6 

4    2 

4    G 

3    4 

5    0 

4    6 

The  prices  of  A  A  iron  sailing  ships  of  highest  class  at  Lloyd's,  and  with  East  India 
outfit:  In  1861,  £15  10s.  per  register  ton ;  in  1862  and  1863,  £17  17s.  Gd.  per  register 
ton;  in  1869,  £14  per  register  ton. 

Tho  price  for  nine  years  on  A  B  cargo  steamers,  fitted  complete,  with  engines  and 
boilers  ready  for  sea:  In  1861,  £18  per  register  ton;  in  1862  and  1863,  £19  2s.  Gd.  per 
register  ton ;  in  1869,  £16  per  register  ton. 

"  I  hope  this  information  may  bo  what  your  friends  require ;  any  further  I  can  give  I 
shall  be  happy  to  do. 

"  Please  note  that  all  the  information  wo  have  given  you  about  steamers  has  been 
for  what  we  call  cargo  boats ;  that  is,  steamers  of  large  carrying  capacity  but  with 
only  moderate  horse-power ;  while  for  ocean-going  steamers  the  price  is  about  £25  per 
register  ton,  and  the  price  of  this  description  of  steamer  varies  very  little,  as  the  cost 
of  fitting  these  vessels  up  for  passengers,  the  engines  &c.,  are  always  much  about  the 
eame ;  thus  for  a  boat  of  2,000  tons  register,  fitted  up  with  full  passenger  accommoda 
tion,  with  engines  on  board  of  large  horse-power  to  give  the  boat  great  speed,  and  all 
tho  other  requisites  required  for  this  class  of  boats,  the  price  would  be  about  £50,000. 

Trusting  this  information  will  be  of  service  to  you. 
Wo  are,  dear  sir,  yours  truly, 

PEACOCK  BROTHERS. 

F.  H.  MORSE,  Esq.,  London. 


B  2. 

Vessels  built  at  Sunderland,  England,  during  the  year  1869. 


Number. 

Iron  ships 28 

Iron  steamships 9 

Totaliron  ships —    37 

Composite  ships 12 

Composite  steamships 1 

Total..  .  —    13 


Wooden  sailing  ships . 
Total.. 


—      6 
56 


224 


NAVIGATION   INTERESTS. 


Tornagc. 

Vessels  from  4SO  to  1,000  tons  burden 42        28,114 

Vessels  from  1,000  tons  and  upward 14        18,179 

Total  tonnage 46,293 


C. 

2  COWPER'S  COURT,  CORXHILL, 

London,  December  7,  1869. 

Sir. :  In  reply  to  your  favor  of  yesterday's  date  we  have  much  pleasure  in  giving  you 
the  following  information,  as  to  the  value  of  wood  and  iron  ships,  as  in  the  year  1860 
and  at  the  present  time : 

In  the  case  of  sailing-ships  the  price  varies  according  to  the  standing  and  repute  of 
the  builder,  and  the  character  of  the  outfit. 

The  same  remark  applies  to  steamers,  besides  which  the  fittings  and  outfit  of  pas 
senger  boats  must  be  considered,  and  also  the  higher  prices  of  engines,  by  the  first  en 
gineering  firms,  on  the  Thames  and  Mersey. 


1860. 

1869. 

"Wood  ships  with  East  India  outfit  and  yellow  metaled  : 

£18  18  to  £16  16  0 
17  17  to  16  16  0 
13  10  to  12  00  0 
12  00  to  11  00  0 
10  10  to  10  00  0 

>  Very  few  built. 

18  00  to  17  00  0 
17  00  to  16  00  0 

21  00  to  20  00  0 
35  00  to  25  00  0 

£15  00  to  £00  00    0 
15  00  to     14  00    0 
1-2  00  to     11  00    0 
11  00  to     10  00    0 
10  00  to       9  10    0 

16  00  to     13  CO     0 

[A]  14  10  to     13  00    0 
[A]  13  00  to     12  00    0 

16  00  to     10  00    0 
30  00  to     20  00    0 

Nine  years  class  

Composite  vessels,  East  India  outfit  and  yellow  metaled  : 

-Fifteen  years  class                 

Iron  ships,  East  India  outfit  : 

Nine  yours  class 

Screw  steamers,  including  average  power  to  tonnage,  cargo 
boats  and  small  passenger  accommodation 

"With  larger  passenger  accommodation  and  greater  power. 

Paddle  steamers  of  greater  power  in  proportion  to  tonnage,  say  difference  in  horse 
power  at  £40  to  £30  per  horse-power. 

Wood  vessels  that  have  been  built  on  speculation  and  have  remained  some  time  on 
builders'  hands  may  now  be  bought  at  a  considerable  reduction  on  prices  quoted  above, 
the  demand  for  wood  vessels  being  now  very  limited. 

Wood  steamers  have  been  entirely  superseded  by  iron,  excepting  a  few  tug-boats. 
Tendering  our  services  at  any  time, 
We  are,  sir,  yours  respectfully. 

GEO.  BAYLEY  &  WM.  RIDLEY. 
Hon.  F.  H.  MORSE, 

Consul  General  United  States. 


No.  1025.]  UNITED  STATES  CONSULATE, 

Liverpool,  December  18,  1869. 

SIR  :  I  have  the  honor  to  acknowledge  the  receipt  of  your  dispatch  inclosing  a  letter 
from  the  Hon.  John  Lynch,  chairman  of  the  Committee  on  American  Navigation  in  tho 
House  of  Representatives,  requesting  information  about  the  cost  of  ships,  wages  to 
workmen,  &c.,  in  Great  Britain  in  1860  and  1869. 

I  have  found  quite  a  discrepancy  in  the  costs  of  building  vessels,  owing  partly,  no 
doubt,  to  the  competition  among  builders  both  now  and  in  1860.  With  regard  to 
wooden  vessels,  there  were  very  few  built  in  Great  Britain  in  1860,  and  less  at  the 
present  time.  So  far  as  I  can  learn,  there  are  no  wooden  steamers  built  at  the  present 
time.  Price  of  wooden  sailing-ships  in  Great  Britain,  in  1860,  from  £18  to  £21  per 
ton.  Price  of  wooden  sailing-ships  in  1869  from  £15  to  £16. 

The  price  for  wooden  steamers  in  1860  is  given  to  me  at  £30  per  ton.  All  say  there 
are  none  now  building. 

Price  of  iron  sailing-ships  in  1860  may  be  given  at  about  £19  per  ton. 

Price  of  iron  sailing-ships  in  1869,  £15  10s. 

Price  of  iron  steamers  of  average  engine  power^  in  I860,  ££6  10s. ;  in  1869,  £22  10s. 


NAVIGATION  •  INTERESTS.  225 

The  above  prices  are,  assuming  the  vessel  to  be  in  every  case  of  about  1,000  tons, 
builders'  measurement,  supplied  with  an  East  India  outfit,  but  without  passenger  ac 
commodation,  and  the  steamers  to  have  engines  of  150  nominal  horse-power.  Larger 
vessels  would  be  dearer,  and  smaller  ones  cheaper,  than  the  rates  given. 

The  wages  of  mechanics  on  ship  work  in  Liverpool,  in  1860,  was  fixed  by  the  Ship- 
Carpeuters'  Association,  a  kind  of  trades  union.  The  foreman  received  nine  shillings, 
and  ordinary  workmen  seven  shillings  per  day.  These  are  the  wages  paid  at  the 
present  time. 

The  rates  for  insurance  in  Liverpool,  for  first-class  vessels,  were  as  follows : 

British-built  vessels,  in  I860,  about  seven  guineas  per  cent,  per  annum.  In  1869, 
about  ten  guineas. 

Colonial-built  vessels,  in  1860,  nine  guineas  per  cent,  per  annum.  The  same  in  1869, 
about  twelve  guineas  per  cent,  per  annum. 

On  steamers,  wood  and  iron,  in  1860,  from  five  to  six  guineas  per  cent,  per  annum. 
The  same  in  1869,  from  eight  to  nine  guineas  per  cent,  per  annum. 

The  only  advantage  possessed  by  ship-builders  and  owners  in  Great  Britain  over  the 
same  class  in  the  United  States,  is  cheaper  labor  and  cheaper  iron.  In  this  country 
there  is  a  redundance  of  labor,  consequently  labor  is  cheap.  The  redundancy  is  so 
great  that  very  nearly  one  man  out  of  every  twenty,  taking  England  and  Wales  to 
gether,  is  a  pauper,  that  is,  has  to  bo  provided  for  in  whole  or  in  part  at  the  public  ex 
pense,  to  keep  him  from  starving.  The  effect  of  this  is  felt  not  only  in  the  construc 
tion  of  vessels,  enabling  builders  to  build  cheaper,  but  to  the  owners  as  well  in  con 
ducting  their  commercial  pursuits,  enabling  them  to  run  their  vessels  at  less  cost,  and, 
as  a  general  thing,  with  a  better  class  of  sailors.  As  an  instance,  wages  of  able  sea 
men  in  New  York,  at  present  time,  are  about  $30  per  month  in  currency,  while  in  Liver 
pool  they  are  only  £2  10s.,  or  equal  to  $12  10  in  gold,  or  about  $16  or  $17  in  currency. 
Iron  is  also  cheaper  in  this  country,  which  is  accounted  for  by  the  same  reason,  viz, 
that  labor  is  cheaper,  thereby  enabling  those  engaged  in  the  iron  business  to  produce 
iron  cheaper  than  it  can  be  made  in  the  States. 
I  have  the  honor,  &c., 

THOMAS  H.  DUDLEY. 

Hon.  HAMILTON  FISH, 

Secretary  of  State. 

UNITED  STATES  CONSULATE, 

Quebec,  November  24,  1869. 

SIR  :  Your  favor  under  date  of  October  30th  has  been  acknowledged.  I  have  given 
the  shipping  interests  of  Quebec  considerable  attention  the  past  year,  and  am  now  able 
to  make  the  following  communication  on  the  subject  of  your  letter  : 

1.  Wooden  sea-going  sailing-vessels. — The  present  cost  of  building  this  class,  including 
both  material  and  labor,  is  about  the  same  as  in  1860.    The  price  of  material  is  higher, 
while  labor  is  lower  than  in  1860. 

2.  The  cost  of  same. — Vessels  of  nine  hundred  tons  cost  about  $38  per  register  ton ;  ves 
sels  of  fourteen  hundred  tons,  $36  per  ton.    *This  does  not  include  the  yellow  metal  for 
sheathing,  the  cost  of  which  is  $3  per  ton.    Vessels  are  usually  sold  in  Europe  before 
they  are  sheathed. 

3.  Value  of  same  in  England. — At  no  time  have  Quebec-built  vessels  been  held  in  very 
high  repute  in  England ;  to-day  they  cannot  be  sold  at  remunerative  prices.   They  sell  in 
England  for  about  seven  pounds  sterling  per  register  ton,  to  which  may  be  added  about 
five  dollars  per  ton  for  outward  freight.    Ship-owners  do  not  like  wooden  vessels.    Iron 
and  composite  are  taking  the  place  of  wood  in  Europe,  except  in  some  special  branch 
of  the  service,  such  as  the  freighting  of  lumber,  &c.     But  iron  and  composite  have  never 
been  built  at  Quebec  or  in  Canada. 

4.  Steamers. — There  never  was  but  one  wooden  sea-going  steamer  built  here — that 

was  many  years  ago.    There  are ocean  steamers  sailing  from  this  port,  and  quite 

a  number  down  the  river  to  the  ports  below.    All  of  them  are  of  iron,  and  built  on  the 
Clyde,  in  Scotland.     Among  the    latter    are    the  Gaspe,   formerly  Emma,    City  of 
Quebec,  formerly  Dunbartou,  and  the  Seacrit,  all  old  blockade-runners  in  the  rebel 
service. 

5.  Tariff  of  1868. — Previous  to  1868,  all  materials  for  ship-building  purposes  imported 
into  Canada  were  subject  to  duties,  but  with  a  drawback  to  the  full  amount  of  duties 
paid.    The  act  01  May  22, 1868,  so  far  as  it  relates  to  the  ship-building  interests,  was 
drafted  by  J.  W.  Dunscomb,  esq.,  collector  of  customs  at  Quebec,  assisted  by  McKay  & 
Warner,  Americans,  and  large  ship-builders  here.    It  was  the  intention  of  these  gentle 
men,  and  also  of  the  government,  to  have  all  material  imported  for  ship-building  free 
of  duty,  but,  through  some  mistake,  a  few  minor  articles  were  not  included,  such  as  a 
certain  class  of  nails,  &c.      All  other  articles  were  made  free  entirely,  except  cables  of 
hemp  or  grass,  cordage,  varnish ;  when  for  ships  only,  free,  otherwise  fifteen  per  cent, 
duty. 

15  N  I 


226  NAVIGATION-  INTERESTS. 

G.  Cost  of  material. — In  order  to  shorten  this  communication,  I  will  refer  you  to  my 
report  on  the  shipping  interests  of  Quebec,  to  Hon.  J.  A.  Graham,  Acting  Register  of  tho 
Treasury,  under  date  of  October  20,  1869. 

7.  Wanes  of  laborers  in  ship-yards. — I  will  refer  you  to  my  report  to  Mr.  Graham. 

8.  Composite  vessels  are  those  with  iron  frames  with  planking  of  wood. 

9.  Ships  now  building  at  Quebec.— There  are  seventeen  in  all,  including  three  half 
composite,  for  market  of  1870. 

10.  Character  of  officers  and  crew. — About  the  same  as  in  the  United  States. 

11.  General  information. — The  labor  per  ship  of  about  one  thousand  tons  classed  A  1, 
at  Lloyds,  will  amount  to  ten  dollars  per  ton. 

I  fully  believe  that  iron  is  to  take  the  place  of  wood,  eventually ;  that  iron  steam 
ships  will  take  the  place  of  sailing,  for  nearly  all  freights  except  lumber.  The  great 
majority  of  ships  to-day  from  Europe  (England  and  France)  to  the  East  Indies  are 
iron  propellers.  You  may  place  the  advantages  of  iron  over  wood  for  means  of  trans 
portation  in  a  greater  ratio  than  you  would  water  over  land. 

In  the  classing  of  vessels,  Lloyds  have  heretofore  given  Quebec  ships  A  1,  seven  years. 
I  am  now  advised  that  in  order  to  advance  the  interest  of  the  Dominion,  they  will  give 
eight  years  in  1870. 

You  will  find  the  wages  of  seamen,  from  the  master  down  to  the  boy,  in  my  report  to 

Mr.  Graham  above  referred  to. 

*********** 

I  am,  sir,  your  obedient  servant. 

CHARLES  ROBINSON, 

United  States  Consul. 
Hon.  JOHN  LYNCH,  M.  C., 

Chairman  Committee  on  American  Navigation. 


UNITED  STATES  CONSULATE, 

Kingston,  Ontario,  November  29, 1869. 

SIR  :  In  obedience  to  a  request  contained  in  yours  of  October  30,  I  have  the  honor  to 
submit  the  following  report : 

1.  Cost  in  Kingston  of  wooden  sailing-vessels  per  ton,  fitted  for  lake  navigation,  in 
1860,  (old  custom-house  measurement,)  two  hundred  and  fifty  tons  and  under,  $50; 
o    er  that  tonnage,  $45  per  ton. 

2.  Wooden  steamers,  for  passengers,  in  1860,  $100  per  ton. 

3.  There  is  but  slight,  if  any,  difference  in  the  cost  of  Ouilding  tho  foregoing  at  the 
present  time. 

4.  First-class  mechanics,  in  ship-yards,  in  1860,  received  from  $1  50  to  $1  75  per  day. 
The  same  prices  are  paid  now  as  near  as  may  bo. 

5.  Steamers  to  class  A 1.    Insurance  for  tfre  season  six  per  cent. ;  sailing-vessels,  one 
per  cent  less. 

6.  I  am  not  aware  of  any  regulation  by  this  government  to  ascertain  the  amount  of 
material  entering  into  tho  construction  of  vessels,  except  the  required  oath  of  tho 
builder  or  owner. 

7.  All  material  imported  for  vessel-building  by  the  builder  or  owner  comes  into  the 
province  free  of  duty,  while  there  is  a  heavy  duty  on  all  material  entering  the  United 
States  for  the  same  purpose,  thereby  giving  to  the  builder  or  owner  here  a  decided 
advantage. 

8.  Character  of  officers  and  crews  of  Canadian  vessels  rates  as  near  as  possible  tho 
same  as  on  American  vessels  of  same  classes. 

At  the  present  time,  compared  with  1880,  pitch,  tar,  and  oakum  are  a  shade  lower 
in  price,  and  timber  a  shade  higher. 

From  the  best  information  I  can  get  these  trifling  variations  in  price  about  neutral 
ize,  thereby  making  the  cost  now  about  the  same  as  in  1860. 

For  a  short  time  during  the  late  rebellion  oakum,  pitch,  and  tar  were  at  fabulous 
prices,  but  at  the  close  of  the  war  dropped  back  to  the  old  prices. 
All  of  which  is  most  respectfully  submitted. 

I  am,  sir,  very  respectfully,  your  obedient  servant, 

S.  B.  HANA, 
United  States  Consul. 
Hon.  JOHN  LYNCH,  Chairman,  $c.,  Washington,  D.  C 


NAVIGATION   INTERESTS.  227 

CONSULATE  OF  THE  UNITED  STATES  OP  AMERICA, 

Halifax,  N.  S.,  December  2,  1869. 

SIR  :  I  have  the  honor  to  acknowledge  the  receipt  of  your  communication,  making 
certain  inquiries  in  relation  to  the  ship-building  interests  of  Nova  Scotia,  and  in  com 
pliance  with  your  request  have  much  pleasure  in  furnishing  the  following  information : 

1.  The  cost  in  Nova  Scotia  of  wooden  ships,  iron  fastened,  per  ton,  fitted  for  sea,  in 
1SGO,  was  fifty-five  dollars ;  and  of  coppered  and  copper-fastened,  about  sixty-five  dol 
lars  per  ton,  register  tonnage. 

2.  There  is  no  material  difference  in  the  cost  of  building  this  class  of  ships  at  the 
present  time,  the  increased  price  of  some  of  the  raw  materials  being  equivalent  to  tho 
abolition  of  the  duty  of  five  per  cent,  on  imported  articles. 

3.  No  wooden  steamers  are  built  in  Nova  Scotia. 

4.  The  rates  of  wages  of  first-class  mechanics  on  ship  work,  in  1860,  were  from  $1  50 
to  $1  75  per  day,  and  at  the  present  time  are  about  the  same. 

5.  Steamships  crossing  tho  Atlantic  are  generally  insured  in  England.    The  rate  01 
insurance  on  such,  steamers  is  about  nine  per  cent,  per  year,  or  one-half  per  cent,  per 
voyage. 

6.  On  sailing  vessels,  the  rates  of  insurance  here  on  voyages  from  Halifax  to  England 
are  from  two  and  a  half  to  three  per  cent. ;  on  voyages  to  the  West  Indies,  from  one 
and  three-fourths  to  two  per  cent. ;  and  to  tho  United  States,  one  per  cent. 

7.  No  specific  regulations  are  adopted  by  the  government  to  ascertain  the  amount  of 
materials  exempt  from  duty  entering  into  the  construction  of  vessels.    The  articles  are 
admitted  free  merely  upon  the  oath  of  the  importer  that  they  are  intended  solely  to  ~be 
used  in  the  construction  of  vessels.    But  by  act  of  Parliament  the  importation  of  goods  so 
exempt  from  duty,  and  all  matters  relating  thereto,  are  subject  to  such  regulations  as 
may  be  prescribed  by  the  governor  and  council  for  the  purpose  of  preventing  fraud  or 
abuse  under  pretext  of  such  exemption. 

8.  The  advantages  possessed  by  ship-builders  and  ship-owners  in  Nova  Scotia  over 
the  same  classes  in  the  United  States  arise  from  the  lower  rates  of  wages,  the  cheaper 
raw  materials,  and  the  exemption  from  duty  of  all  imported  articles  required  in  the 
construction  of  ships. 

These  advantages  are  partially  counterbalanced  by  the  greater  durability  of  Ameri 
can-built  vessels,  owing  to  the  better  quality  of  the  timber  used  in  their  construction. 

Formerly  the  duty  in  Nova  Scotia  on  ship-building  materials  was  five  per  cent.,  but 
under  the  present  Canadian  tariff  they  are  admitted  duty  free. 

There  has  been  no  material  change  in  the  price  of  labor  and  ship-building  materials 
in  this  province  since  1866,  and  I  respectfully  refer  you  for  many  particulars  relating 
thereto  to  my  report  on  that  subject  made  in  that  year,  and  published  (page  219)  in  the 
appendix  to  the  report  of  the  Special  Commissioner  of  Revenue. 

But  a  small  number  of  American  vessels  have  been  registered  in  Nova  Scotia. 

While  the  admission  of  American  vessels  to  registry  in  the  British  North  American 
provinces  is  of  but  little  practical  importance  to  American  citizens,  the  admission  of 
foreign  vessels  to  registry  in  the  Uuited  States  necessarily  involves  the  opening  of  our 
coasting  trade  to  foreign  competition. 

This  would  be  most  injurious  to  the  ship-building  interests  of  our  country. 

It  is  not,  therefore,  it  appears  to  me,  by  admitting  foreign  vessels  to  registry  upon  an 
equal  footing  with  our  own,  and  thus  opening  our  extended  coasting  and  inland  trado 
to  foreign  competition,  that  the  shipping  and  ship-building  interests  of  the  United 
States  are  to  be  restored  to  their  former  state  of  prosperity,  but  by  the  reduction  of 
duties  on  all  imported  materials  for  the  construction  of  ships,  and  by  liberal  subsidies, 
under  judicious  regulations,  to  ocean  mail  steamers. 

I  have  the  honor  to  be,  sir,  your  obedient  servant, 

M.  M.  JACKSON. 

United  States  Consul 

Hon.  JOHN  LYNCH, 

Chairman  of  the  Committee  on  American  Navigation  Interests 


UNITED  STATES  CONSULATE, 
St.  John,  New  Brunswick,  November  29,  1869. 

SIR  :  I  have  the  honor  to  acknowledge  the  receipt,  this  18th  day  of  November,  of 
your  letter,  dated  October  30,  1869,  forwarded  me  through  the  Department  of  State, 
asking  certain  information  concerning  ship-building  interests  of  the  province. 

Inquiry  of  the  same  character  having  lately  been  made  of  this  office  by  the  Treasury 
Department,  I  am  therefore  enabled  to  answer  your  questions  without  much  delay. 

The  cost  of  wooden  ships  and  wooden  steamers  built  in  this  province  in  1860  and 
1869  is  the  Bame.  A  comparison  of  ships  and  steamers  built  then  and  now  show  no 
difference  in  cost  per  ton  worth  noting.  Sailing  vessels  of  from  1,200  to  1,500  tons  reg- 


228  NAVIGATION   INTERESTS. 

ister,  complete  with  anchors  and  sails,  ready  for  sea,  can  be  built  for  $40  per  ton. 
They  are  what  the  Liverpool  market  term  soft-wood  ships.  Frames  arc  spruce ;  stan 
chions,  keelsons,  waterways,  stringers  and  rails  are  hard  wood ;  that  is,  hackmatack 
or  pitch  pine.  They  class  3-3;  1-1.  Seven  years  French  Lloyds,  wooden  steamers, 
for  use  on  the  St.  John's  Eiver  and  Bay  of  Fundy,  are  built  here  at  a  cost,  when  ready 
for  sea,  fitted  complete,  of  $90  to  $95  per  ton  register;  the  largest  being  about  (550 
tons  register,  with  150  horse-power,  cabins  and  saloon,  built  of  hackmatack  and  Bay 
spruce.  No  steamers  are  built  but  those  required  for  local  traffic. 

The  rate  of  wages  for  ship-carpenters  have  varied  but  little  in  ten  years.  I  am  in 
formed  by  different  parties  that  the  difference  has  not  exceeded  ten  cents  per  day  at 
any  time  within  ten  years  last  past.  First-class  ship  mechanics  get  from  eight  to  nine 
shillings  a  day,  that  is,  $1  60  to  $1  80. 

Rate  of  insurance  on  sailing  vessels  is  twelve  per  cent,  per  annum,  to  go  anywhere, 
except  Gulf  of  St.  Lawrence  in  winter  season.  Rates  of  insurance  on  steam  vessels  are 
the  same  as  on  sailing  vessels.  Fire  rates  are  from  two  to  two  one-half  per  cent. 

There  are  no  regulations  whatever  adopted,  by  which  the  amount  of  material  enter 
ing  into  the  construction  of  vessels  which  are  exempt  from  duty  can  be  ascertained. 
The  Dominion  government,  in  their  tariff  of  customs,  exempt  certain  articles  intended 
for  the  construction  of  vessels.  There  being  no  check  other  than  the  oath  of  the  im 
porter  that  the  articles  are  imported  for  the  purpose  of  ship-building,  it  is  impossible 
to  ascertain  what  part  or  how  much  of  such  importations  actually  enter  into  the  con 
struction  of  shipping.  An  examination  of  the  customs  records  shows  the  entire  import 
ation  of  these  exempted  articles  to  be  for  ship-building  purposes. 

The  advantages  claimed  by  New  Brunswick  ship-builders  over  those  of  the  United 
States  are  numerous,  the  most  important  being  cheapness  of  timber,  low  wages  of 
ship-carpenters  and  laborers,  free  entry  of  all  foreign  material  entering  into  the  con 
struction,  use  of  less  timber  and  bolting,  giving  a  lighter  and  stronger  vessel  than  the 
American  build.  (This  is  a  question  of  construction,  and  one  worthy  our  American 
ship-builders'  attention.)  Building  their  vessels  under  the  inspection  and  scrutiny  of 
London  Lloyds  and  French  Lloyds,  giving  them  a  preference  in  market  over  those  not 
classed,  or  those  classed  in  American  Lloyds.  The  ship-owners  of  the  province  get 
their  vessels  at  very  low  prices,  because  of  there  being  no  foreign  demand  for  colonial 
ships.  That  although  the  spruce  ships  may  not  be  as  durable  as  our  oak,  still  their 
greater  buoyancy  gives  great  advantage  in  carrying  dead  freights.  The  difference 
they  claim  to  be  twenty-five  per  cent,  in  their  favor,  and  more  than  compensates  for 
difference  in  durability."  My  knowledge  of  officers  and  crews  being  confined  almost 
entirely  to  those  of  American  shipping,  I  am  unable  to  contrast  them  with  those  of 
New  Brunswick.  As  far  as  my  observation  goes,  I  think  our  officers  superior  in  educa 
tion  and  general  business  capacity,  but  the  New  Brunswick  skipper  is  generally  a 
'thorough  sailor  and  of  steady  habits.  As  to  the  crews  of  the  different  vessels,  it  would 
be  hard  to  make  a  distinction.  The  only  nationality  attaching  to  any  of  them  being 
the  flags  under  which  they  sail  from  time  to  time.  When  we  find  an  American  sailor 
who  has  a  pride  in  his  nationality,  he  is  generally  a  very  superior  man  to  those  of  any 
other  country.  That  he  is  a  better  sailor,  I  cannot  say. 

In  former  years  the  colonial  ship-builders  found  market  for  their  vessels  in  Liver 
pool,  which  often  gave  them  fair  profits,  and  again,  heavy  losses  were  suffered.  Their 
ships  went  to  market,  like  any  other  article  of  sale,  the  prices  depending  upon  the  de 
mand.  They  were  built  of  hackmatack,  pitch-pine  and  oak,  and  under  the  scrutiny  of 
Lloyds,  London,  the  most  of  them  receiving  their  (Lloyds)  classification  of  seven 
years,  A  1,  which  was  indispensable,  in  case  of  sale  in  that  market.  The  demand  for 
this  class  of  vessels  having  ceased,  the  builders  are  engaged  in  the  construction  of  the 
spruce  or  soft-wood  vessel,  depending  upon  the  citizen,  merchant,  and  ship-broker  of 
the  province  as  purchasers.  The  demand  is  quite  limited,  and  for  three  years  the 
business  has  been  rapidly  declining.  The  few  ships  built  pay  the  builder  no  profit, 
notwithstanding  the  advantages  they  have  in  cheap  material,  labor,  &c.  They  are 
generally  built  under  the  inspection  of  French  Lloyds.  Ship-owuers  inform  me  their 
spruce  vessels  are  giving  better  satisfaction  than  expected,  and  so  well  pleased  are 
they,  that  they  declare  their  intention  of  confining  their  future  investments  to  that 
class.  They  cost  about  five  dollars  per  ton  less  than  the  hackmatack  ship,  and  carry 
fully  sixteen  per  cent,  more  guano  or  coals. 

In  giving  the  cost  of  these  vessels  at  $40  per  ton,  I  intend  it  as  a  fair  average.  It 
would  probably  give  a  clearer  understanding  to  the  committee  to  give  the  different 
kinds  of  vessels  and  cost  of  each.  Small  vessels,  single  deck,  to  class  in  French  Lloyds 
A  1,  five  years,  will  cost  $34  to  $37  per  ton.  Vessels  classed  A  1,  3-3,  five  years,  will 
cost  from  $38  to  $39  per  ton.  Vessels  classed  A  1,  3-3,  six  years,  will  cost  "$39  to  $40 
per  ton.  Vessels  classed  A  1,  3-3,  seven  years,  will  cost  $42  to  $44  per  ton.  The  ves 
sels  of  the  five-year  class  may  be  built  of  timber  wholly  the  growth  of  the  province. 
In  the  six  year  class,  the  rudder,  stock,  and  windlass,  must  bo  southern  oak,  and  the 
stems,  stern-posts,  aprons,  knight -heads,  bills,  corners,  &c.,  must  be  either  oak  or 
hackmatack.  In  the  seven-year  class,  southern  oak  for  all  cases  Avhere  hackmatack  or 


NAVIGATION   INTERESTS.  229 

oak  is  required  in  the  six-year  class,  also,  tamarack  or  pitch-pine  beams,  pitch-pine  or 
oak  keelsons,  waterways,  stringers,  rails,  &c.,  &c.  All 'of  these  vessels,  when  running 
from  two  hundred  to  four  hundred  tons  register,  more  or  less  iron  knees  are  required 
under  every  beam.  Above  six  hundred  tons,  in  addition  to  the  knees,  iron  straps  on 
the  outside,  or  an  equivalent  in  the  ceiling,  with  edge  bolting,  &c.  Ships  may  be  built 
in  this  province  from  one  to  two  dollars  per  ton  less,  but  only  when  the  object  is  pro 
duction  at  the  lowest  possible  cost. 

In  building  spruce  ships,  much  depends  upon  the  condition  of  the  timber  and  the 
care  in  putting  it  together,  it  being  very  essential,  indeed,  indispensable  to  long  ser 
vice,  that  the  timber  be  cut  in  the  winter  season ;  that  every  part  have  thorough 
ventilation,  and  so  salted  that  the  salt  remains  where  placed  and  not  .allowed  to  collect 
on  the  bottom.  When  ready  for  sea  a  spruce  ship  should  never  be  allowed  to  cruise  in 
tropical  climates  until  she  has  had  a  year's  service  in  northern  waters.  When  carefully 
and  properly  built  and  cared  for,  spruce  vessels  are  known  to  have  sailed,  discharging 
their  cargoes  in  good  condition,  from  sixteen  to  twenty  years.  Again,  when  con 
structed  of  timber  cut  in  bad  season  and  probably  sent  south,  while  green,  they  have 
become  utterly  worthless  in  five  years. 

That  the  committee  may  have  some  of  the  reasons  advanced  by  the  builders  here  of 
their  advantages  in  construction  over  our  American  builders,  in  a  form  more  ship- shape 
than  I  can  give,  I  enclose  extract  of  letter  recived  from  Mr.  Tucker,  the  very  intelli 
gent  and  long  experienced  agent  of  Lloyds,  London,  who  has  made  the  construction 
of  ships  a  study  for  forty  years,  and  who  has  been  the  agent  of  the  committee  of 
Lloyds  in  this  province  for  fifteen  years,  in  which  time  ho  has  introduced  many  and 
radical  reforms  in  the  construction  of  sailing  vessels. 

I  ani  sir.  very  respectfully,  your  obedient  servant, 

D.  B.  WARNER, 

United  States  Oonsnl. 

Hon.  JOHN  LYXCH, 

Chairman  Committee  on  Navigation  Interests. 


[Extract.] 


Permit  me  to  state  that  since  the  appointment  of  surveyors  to  these 
provinces  by  the  committee  of  Lloyds,  London,  so  great  has  been  the  reduction  in  cost 
of  construction  of  our  vessels,  while  the  improvements  have  been  considerable,  from  a 
personal  knowledge,  and  [  believe  it  is  generally  concorded.  Ships  of  any  required 
model  and  build  to  class  A  1  in  the  society  of  Lloyds'  register,  London,  can  be  con 
structed  in  the  Dominion  of  Canada  for  one-fourth  less  cost  than  they  can  be  turned  out 
of  any  building  yard  in  the  States  of  America.  As  a  consequence,  the  reduction  of  ex 
penses  in  construction  being  so  important,  comparatively,  where  colonial  vessels  are 
returning  interest  upon  the  outlay  to  their  respective  owners,  the  mercantile  vessels  of 
the  United  States  are,  as  a  general  thing,  running  to  a  disadvantage;  in  fine,  are  yield 
ing  no  profitable  return  to  those  who  may  be  interested. 

It  is  also  generally  admitted  that  vessels  constructed  of  tamarack  or  spruce  have  a 
material  advantage  over  others,  because  of  their  buoyancy,  while  they  are  equally  as 
durable  when  properly  cared  for ;  this  species  of  timber  not  being  of  the  same  specific 
gravity  compared  with  that  which  enters  into  the  construction  of  ships  built  in  the 
United  States.  Our  colonial  vessels,  as  a  consequence,  when  either  light  or  laden,  do 
not  become  so  deeply  immersed,  sailing,  it  is  estimated,  about  one-sixth  lighter,  admit 
tedly  carrying  a  heavier  dead  weight  and  measurement  cargo,  tonnage  being  compared, 
and  have  a  much  more  free  board  than  ships  built  wholly  of  oak. 

Again,  your  builders  adhere  to  the  anci«ut  method  of  building  ships  with  wood  lodg 
ing  and  vertical  knees,  which  are  pretty  to  look  at,  because  of  the  diffuse  quantity  of 
short  bolts  introduced  for  fastening,  considered  by  those  practically  acquainted  with 
ships,  but  very  indifferent  security,  those  knees  not  only  increasing  the  weight,  the 
former  of  no  longitudinal  strength,  occupying  a  largo  space  of  the  ship's  carrying 
capacity,  also  preventing  that  free  passage  of  air  so  essentially  necessary  in  all  vessels, 
of  whatever  may  be  their  material,  thus  causing,  it  may  fairly  bo  presumed,  the  ships 
to  prematurely  decay. 

In  the  better  class  of  colonial  vessels,  especially  those  constructed  to  class  at  Lloyds, 
wood  vertical  knees  to  beam  ends  have,  as  a  general  thing,  become  obsolete,  and  in 
many  instances  both  vertical  and  lodging  knees  of  wood  are  dispensed  with,  and  in 
lieu  thereof,  shelves  and  water-ways  are  worked  equal  in  transverse  sectional  area  to 
the  respective  beams  at  their  ends.  Iron  hanging  knees  and  knee  riders  are  substi 
tuted,  the  latter  embracing  all  the  points  of  the  frame,  bolted  through  and  through, 
the  bolts  being  spaced  less  than  every  twenty-one  inches  apart,  the  whole  length  of 
rider,  thereby  giving  those  vessels  an  advantage  over  yours  in  regard  to  connection, 
general  strength  throughout,  better  ventilation,  and  larger  carrying  capacity. 


230  NAVIGATION   INTERESTS. 

It  would  also  be  needless  for  ine  to  state  other  than  that  our  better  class  of  vessels 
are  more  liberally  supplied  with  ground  tackling  and  general  equipments,  those  im 
portant  essentials  required  to  be,  by  Lloyds'  register,  rigidly  tested  at  public  machines 
recognized  by  them.  While  stating  those  advantages  and  requirements  I  admit  that 
there  are  many  fine  points  about  your  American-built  ships  to  be  admired:  their  very 
fine  model,  the  application  of  modern  appliances  to  reduce  labor  and  facilitate  the 
working  of  ships,  their  general  smooth  finish,  the  generally  acknowledged  accommo 
dation  for  the  mariner  who  traverses  the  storm-tossed  deep,  and  the  general  stores 
supplied,  excepting  anchors  and  chain  cables,  which  although  of  the  most  vital  im 
portance  for  the  safety  of  both  life  and  property,  those,  as  a  general  thing,  are  found 
light  and  untested.  *  * 


UNITED  STATES  CONSULATE, 
Prince  Edward  Island,  November  22, 1869. 

Sm :  In  reply  to  your  letter  of  October  30,  1869,  this  day  received,  I  have  the  honor 
to  state : 

1.  The  cost  in  Prince  Edward  Island  of  wooden  ships,  fitted  for  sea,  was  £9  4s.  6d.,  or 
$29  52  per  ton,  medium  tonnages,  in  1860. 

2.  Steamers  are  not  built  on  the  island. 

3.  The  cost  of  wooden  ships,  fitted  for  sea,  is,  at  this  time,  £10,  or  $32,  per  ton. 

4.  The  rate  of  wages  for  first-class  mechanics,  on  ship  work,  was,  in  1860,  7s.  6d,  or 
$1  20  per  diem. 

5.  Wages  of  same  class,  at  present  time,  Qs.  6d.  to  7s.,  or  $1  04  to  $1  12,  per  diem. 

6.  Rate  of  insurance  on  steamships  and  sailing-vessels  from  eight  to  ten  per  cent. 

7.  There  is  no  government  regulation  for  ascertaining  the  amount  of  materials  used 
in  the  construction  of  vessels  which  are  exempt  from  duty. 

8.  The  character  of  officers  and  crews  of  Prince  Edward  Island  vessels  is  very  inferior 
to  that  of  the  same  classes  on  vessels  of  the  United  States. 

9.  I  would. mention,  in  explanation  of  the  cost  of  construction,  as  above  given,  that 
the  pound  currency  of  this  island  is  equal  to  three  dollars  and  twenty  cents  of  federal 
money. 

I  have  the  honor  to  be,  very  respectfully,  your  obedient  servant, 

E.  PARKER  SCAMMON, 

United  States  Consul. 
Hon.  JOHN  LYNCH,  M.  C., 

Chairman  Committee  on  Navigation  Interests. 


CONSULATE  GENERAL  OF  THE  UNITED  STATES  OF  AMERICA, 

Frankfurt  am  Mam,  December .31,  1869. 
To  the  Hon.  Committee  on  American  Navigation  Interests : 

During  the  present  month  I  had  the  honor  to  receive  from  the  Department  of  State, 
a  dispatch  inclosing  certain  inquiries,  by  your  committee,  concerning  the  navigation 
interests  of  Prussia.  Sensible  of  the  importance  of  the  subject  under  your  considera 
tion,  not  only  as  it  affects  all  persons  directly  engaged  in  ship-building  and  commerce, 
but  also  as  it  bears  upon  the  nuances  and  vital  interests  of  the  government,  I  have  en 
deavored  to  furnish  full  and  satisfactory  information  upon  the  matters  involved  in  your 
inquiries,  however  it  may  affect  your  object.  . 

Prior  to  the  year  1866,  Prussia  was  a  member  of  the  old  Germanic  Diet,  and  up  to 
that  time,  neither  Prussia  alone,  nor  the  Diet  exhibited  any  inclination  or  ability 
either  to  extend  its  commerce,  or  to  establish  a  navy  and  increase  its  inaratime  strength. 
The  secession  of  Prussia  and  the  events  of  the  year  1866  attending  and  consequent 
thereon,  scattered  that  confederation.  A  North  German  Union  was  formed  of  the  sev 
eral  northern  powers  of  Germany  ;  the  other  powers  remaining  isolated.  Prussia  is 
the  head,  and  principal  power  of  the  twenty-two  distinct  independent  governments 
constituting  the  North  German  Union,  as  it  alone  contains  24,000,000  of  the  30,000,000 
inhabitants  of  the  whole  Union,  and  covers  five-sixths  of  the  wiiole  territory  of  the 
Union. 

The  principal  ports  of  the  North  German  Union  are  the  free  cities  of  Bremen  and 
Hamburg.  The  merchant  marine  is  mostly  confined  to  those  free  cities,  and  there  is 
but  little  merchant  marine  in  any  port  of  Prussia.  Each  power  of  the  Union  may  reg 
ulate  its  own  merchant  marine  independently  of  all  the  other  powers  of  the  Union,  but 
it  can  have  no  separate  navy.  The  navy  belongs  to  the  Union  as  a  whole.  I  shall, 
therefore,  in  answering  your  inquiries,  inform  you  upon  the  subject-matters  of  inquiry 


NAVIGATION   INTERESTS.  231 

not  only  as  they  affect  Prussia,  but  also  as  they  affect  the  North  German  Union  as  a 
confederation. 

The  inland  location  of  the  states  of  the  North  German  Union  would  seem  not  to  ad 
mit  of  a  large  merchant  marine  or  require  a  powerful  inaratiino  force,  still  individuals 
are  greatly  increasing  the  former,  and  the  government  immensely  enlarging  the  latter, 
and  all  tending  to  a  great  maritime  power. 

These  tables  *  show  in  detail  the  present  amount  of  the  merchant  marine  according 
to  the  last  public  accounts  and  the  latest  information  that  can  be  had.  Only  ordinary 
merchant  vessels  are  built  in  Prussia.  The  most  valuable  and  largest  of  ocean  steamers 
are  still  built  upon  the  river  Clyde. 

To  the  second  inquiry:  "What  encouragement  the  Prussian  government  offers  to 
ship-builders  and  ship-owners  by  way  of  bounties,  drawbacks,  and  exemption  from 
taxation.  If  material  entering  into  the  construction  of  ships  is  exempt  from  duty,  or 
a  drawback  is  allowed  upon  it,  what  regulations  are  adopted  by  the  government  to 
ascertain  the  amount  used,"  I  reply  that  no  bounties,  drawbacks,  or  exemption  from 
duties  or  taxation  are  provided  either  by  Prussia  or  the  North  German  Union. 

There  is  a  general  complaint  among  those  interested  in  the  merchant  marine  that 
their  interests  are  neglected  by  the  government  in  favor  of  the  navy.  As  an  evidence 
of  the  feeling  upon  this  subject,  I  call  your  attention  to  the  discussion,  at  the  last 
meeting  of  the  German  Nautical  Association,  of  the  new  law  of  the  federal  council  of 
the  North  German  Union,  requiring  a  more  technical  school  education,  and  more 
thorough  qualifications  of  captains  and  inferior  ship  officers,  and  subjecting  them  to 
more  rigid  technical  examinations,  without  regard  to  practical  knowledge.  This  asso 
ciation  is  composed  of  the  leading  ship-owners,  ship-builders,  underwriters,  and  cap 
tains  of  Hamburg  and  Bremen.  The  association  expressed  their  dissatisfaction  with 
the  apparent  disregard  by  the  government  of  the  merchant  service,  and  severely 
denounced  the  tendency  of  Prussia  to  shape  all  naval  matters  and  regulations  to  the 
interest  of  the  navy  on  the  ground  of  the  pretended  great  necessity  of  making  tho 
"  Union  "  a  powerful  maritime  power,  to  the  neglect  and  injury  of  tho  merchant  marine 
service  of  the  ports  of  the  country.  '  They  ask  the  question — "  What  importance  as  a 
maritime  power  had  Prussia  previous  to  the  annexation  of  Schleswig-Holstein  and 
Hanover  If"  The  answer  was,  "  That  except  on  the  Baltic,  where  Denmark,  Sweden,  and 
Russia  also  dominated,  Prussia  had  no  maritime  power  at  all ;  while  tho  Hanseatic 
flag,  that  of  Hamburg,  Bremen,  and  Lubcc,  had  carried  the  German  name  to  every 
quarter  of  the  globe."  It  thus  appears  that  the  ship-builders  and  ship-owners  receive 
not  only  no  encouragement,  but  that  the  government  is  more  intent  upon  aggrandizing 
its  own  power  upon  tho  sea,  as  well  as  upon  tho  land,  than  advancing  the  commerce 
and  shipping  of  its  ports. 

To  the  third  inquiry :  "Whether  shipstores  are  allowed  to  bo  taken  in  bond  for  con 
sumption  on  the  voyage  ? "  I  answer  that  no  dutiable  shipstores  are  allowed  to  be 
taken  on  board,  under  any  privilege  of  exemption  from  duty,  by  any  law  of  Prussia  or 
of  the  "  Union." 

To  the  fourth  inquiry :  "  What  subsidies  are  paid  to  lines  of  Prussian  steamers  ?"  I 
answer  that  no  subsidy  is  paid  to  any  lino  of  steamers  by  the  North  German  Union  or 
by  Prussia,  and  it  is  not  supposed  that  tho  free  cities  of  Hamburg  or  Bremen  pay  any 
subsidy  or  allow  any  privilege  or  exemption  from  duty  to  any  line  of  steamers  leaving 
said  ports. 

The  Bremen  and  Hamburg  steamship  companies  have  contracts  with  tho  North  Ger 
man  Union  for  carrying  tho  mails,  bnt  they  are  paid  only  for  the  exact  services  per 
formed,  and  at  very  low  rates  of  compensation. 

To  the  last  inquiry:  "What  measures  are  adopted  to  improve  the  character  of  and 
secure  efficiency  in  the  merchant  marine  service,  and  what  relation  does  this  service 
hold  to  the  navy  of  Prussia  ?"  I  reply  that  tho  North  German  Union  have  not  had 
time  to  adopt  measures,  which  experience,  the  essential  portions  of  which  are  herewith 
given,  might  show  to  be  useful  to  itself  or  instructive  to  others. 

Some  of  the  ports  have  established  schools  for  tho  study  of  navigation,  which  have 
attained  distinction.  There  are  laws  regulating  the  sea-worthiness  of  vessels,  also 
laws  respecting  ship-building. 

The  relation  of  the  merchant  marine  service  to  tho  navy  is  best  answered  by  a  trans 
lation  of  those  articles  of  the  constitution  of  tho  North  German  Union  referring  to 
navigation,  viz : 

"SECTION  53.  The  federal  navy  is  a  united  one,  under  tho  supreme  command  of 
Prussia.  The  organization  and  composition  of  the  same  is  incumbent  upon  his  Majesty, 
the  King  of  Prussia,  who  appoints  all  the  officers  of  the  navy,  and  to  whom  the  latter, 
together  with  the  marine  troops,  must  take  tho  oath  of  allegiance. 

u  The  ports  of  Kiel  and  Jahde  are  federal  war  ports. 

"  The  cost  and  expense  incurred  in  tho  foundation  and  maintenance  of  the  navy  and 
the  institutions  connected  therewith  will  bo  borne  by  the  federal  treasury. 


*Tbc  report  of  Mr.  Webster  was  accompanied  by  an  elaborate  set  of  tables,  translated 
)r.  Engels,  cbiof  of  tbo  Prussian  statistical  bureau. 


__  i  from  a  work  of 

Dr. 


232 


NAVIGATION   INTERESTS. 


''The  entire  marine  population  of  the  Union,  the  body  of  engineers,  and  marine 
mechanics  included,  is  dispensed  from  the  service  in  the  army,  but  obliged  to  serve  in 
the  federal  navy. 

"The  distribution  takes  place  in  proportion  to  the  existing  marine  population,  so 
that  the  number  to  be  furnished  by  each  government  will  be  deducted  from  the  quota 
to  be  furnished  for  the  army. 

"  SEC.  54.  The  merchant  men  of  all  the  federal  States  form  ?.  joint  merchant  marine. 

"  The  Union  will  fix  the  mode  of  ascertaining  the  tonnage  of  sea  vessels,  regulate  the 
issue  of  bills  of  tonnage,  and  ships'  certificates,  and  the  conditions  of  licenses  of  sea 
Tessels. 

"  The  merchant  men  of  all  the  federal  states  are  uniformly  admitted  and  received  at 
the  seaports,  and  on  all  natural  and  artificial  water  roads  of  the  several  federal  states. 
The  imports  on  vessels  or  cargoes  for  the  benefit  of  any  institution  shall  not  exceed 
the  cost  of  same." 

I  have  thus  endeavored  to  give  the  desired  information  upon  the  subject-matter  of 
your  inquiries.  I  fear  that  you  will  derive  but  little  light  from  the  information  that 
will  enlighten  your  investigations.  The  government  aims  to  enhance  itself,  and  mag 
nify  its  strength  and  power  as  a  nation,  more  than  to  aid  the  individual  or  develop 
the  industry  and  wealth  of  the  country.  Neither  is  government  aid  much  needed 
where  every  kind  of  material  is  so  cheap,  and  labor  so  poorly  paid.  If  the  merchant 
marine  is  allowed  to  develop  itself,  wherever  commerce  demands  or  justifies  its  estab 
lishment  in  the  ports  of  Germany,  and  is  not  burdened  by  government,  it  will  regulate 
itself,  and  will  compensate  all  persons  employed  in  its  interests.  The  kingdoms  of 
Bavaria  and  Wurtemberg  and  the  grand  duchies  of  Baden  and  Hesse-Darmstadt  being 
still  independent,  and  forming  no  part  of  the  Union,  are  not  referred  to  in  this  com 
munication. 

I  trust  that  a  satisfactory  result  will  follow  as  the  reward  for  your  arduous  labors. 
I  have  the  honor  to  be  your  obedient  servant, 

WM.  PREUTIN  WEBSTER, 

Consul  General. 

Hon.  JOHN  LYNCH, 

Chairman  Committee  on  American  Navigation  Interests. 


Sea  vessels  and  river  steamers  in  the  old  Prussian  provinces.    State  at  the  end  of  the  year  1867. 

NUMBER  AND  QUALITY  OF  MERCHANTMEN  IN  THE  BEGINNING  OF  THE  YEAR  1868. 


Number 
of  vessels. 

Lasts. 

SAILING  VESSELS. 

Sea  vessels  of  a  tonnage  of  more  than  40  lasts  *    

960 

183  742 

Coastin01  vessels  of  less  than  40  lasts 

422 

9  746 

STEAMERS. 

Sea  steamer 

23 

3  959 

Steam  tow-boats,  river-steamer 

84 

1,677 

Total  

1  464 

•  199  124 

Of  the  above  steamers  there  were 


Tonnage 
of  lasts. 

Horse 
power. 

26  sea  screw-steamers  

3,788 

1.667 

2  pachlle  steamers 

171 

240 

21  tow-boats  and  river  screw-steamers.   .                 A                                            

500 

372 

C3  tow-boats  and  river  paddle-steamers 

1  177 

2  399 

112  steamers 

5  636 

4  G78 

NAVIGATION   INTERESTS. 
Changes  in  the  state  of  1363  to  1867. 


233 


Of  the  vessels  built  at  home 
there  were  built  in— 

1863. 

1864. 

1865. 

1866. 

1867, 

43 
37 
4 

2 
1 

8 

For  domestic  ship  owners     

93 
63 
14 
1C 

76 
48 
14 
12 

85 
64 
12 

9 

73 
56 
16 

Coasting  vessels 

For  foreign  account                     .     .  .          

7 

8 

6 

8 
81 

Total                                    

100 

85 

91 

52 

In  the  beginning  of  the  year  1868  there  were  building  on  Prussian  and  Pomeranian 
wharves  31  sea  vessels,  5  coasting  vessels,  and  2  steamers  ;  that  is  to  say,  just  as  many 
as  in  the  preceding  year. 

During  the  years— 


1863. 

1864. 

1865. 

1866. 

1867. 

There  were  bought  in  other  states  

17 

10 

3 

3 

5 

Of  which  there  were  stranded  and  brought  off 

o 

3 

1 

2 

Sold  to  other  states       

13 

15- 

17 

17 

14 

Wrecked 

1 

1 

6 

2 

2 

Sea  and  river  vessels  of  the  province  of  Hanover.    State  at  the  end  of  the  year  1865. 

NUMBER  AND  QUALITY  OF  MERCHANTMEN  AT  THE  END  OF  TEE  TEAK  1865. 


o 

a«s 
II 

ti 

n 

'3 

1 

1 

1 

Soa  vessels 

862 

64  371 

5  324 

River  and  coasting  vessels  

2  762 

30  175 

5  556 

'  A  last  is  like  two  tons,  or  4,000  pounds. 
Changes  in  the  state,  1862  to  1866. 


Province  of  Hanover. 

Sea 
vessels. 

Tonnage   in 
lasts  of  4,000 
pounds. 

1862 

843 

54  169 

1863        i  

842 

60  251 

1864 

814 

60  101 

1865                             

862 

64  371 

106G  

859 

62  123 

The  five  principal  ports  of  the  province  were  at  the  end  of  the  year  1866  in  possession 
of  377  sea  vessels,  of  a  tonnage  of  37,954  lasts,  viz : 


Vessels. 

Tonnage 
of  lasts. 

17 

2  759 

Gecstomunde          .                             

44 

10'  567 

84 

5  397 

Le/>r                  .  .                                      ..... 

50 

3  202 

Paponburg  

182 

16  029 

234 


NAVIGATION   INTERESTS. 
River  and  watching  revenue  vessels. 


Tear. 

Vessels. 

Lasts.* 

1362                                        ...            

2,748 

3t  173 

1863                   

2,776 

31,  22D 

Ig64                                                                           

2,792 

30  8G3 

1865                        

2,  7C2 

30,  175 

1866                                                                .             

2,809 

31,  034 

*  A  Prussian  last  is  equal  to  two  tons. 
Of  the  same  -were  steamers,  viz : 


Vessels. 

Tonnage 
of  lasts. 

1862             

10 

410 

1863 

11 

471 

1864            

11 

443 

1865 

13 

560 

1866               .... 

16 

753 

As  regards  ship-building,  there  were  finished  in  the  course  of — 


Sea  vessels. 

River  and  watch 
vessels. 

No. 

Tonnage 
of  lasts. 

No. 

Tonnage 
of  lasts. 

1862 

93 
112 
70 
74 
66 

9,246 
12,  221 
9,  123 
8,858 
7,910 

130 
125 
100 
106 
95 

2,483 
1,  928 
1,  223 
1^207 
1,159 

1863                           .          

1864 

1865 

1866                   

Schleswig-Holstcin  merchant  marine.     Changes  in  the  state  of  1860  to  1866. 


In  the  year 

Number  of 
vessels. 

Tonnage  of 
lasts.* 

In  the  year 

Number  of 
vessels. 

Tonnage  of 
lasta.* 

I860   

2  549 

63  408 

1864 

2  552 

CG  506 

1861 

2  590 

63  814 

1865 

O  fJTI 

68  173 

1862 

2  633 

65*  766 

1866 

2  5°7 

69  g65 

1863  

2  639 

67  582 

*  A  Prussian  last  is  equal  to  two  tons. 
State  of  the  merchant  marine  of  the  North  German  Union  on  the  1st  of  February,  18G9. 


.3 

!» 

a 

&  3 

M 

States  to  which  the  vessels  belong. 

4 

0  03 

II 

|l 
c  ? 

o  ri 
£§ 

> 

H 

48 

8 

1.  Prussia: 

Province  of  Prussia  and  Pomerania  

1  382 

403  COO 

29 

8  000 

Province  of  Hanover     

1  310 

133  r)00 

2 

800 

Province  of  Sleswig-Holstein  

919 

114  500 

5 

5  GOO 

Total  

3  611 

651  000 

36 

14  400 

2   Hamburg... 

467 

°4r)  300 

35 

36  900 

3.  Bremen  

307 

044  700 

20 

39  200 

4   Mecklenburg 

449 

17°  600 

1 

°00 

5.  Oldenburg  

231 

57  KiO 

6   Liibeck 

43 

10  500 

21 

5  500 

In  all 

5  103 

1  381  °00 

113 

96  OOQ 

NAVIGATION   INTERESTS. 


235 


§  s 


Sd 
o 


C"3  «  00 


5-3 

s 


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Ci       OCO 


i 


If  11 

W«H3<J 
TH     ci  «  ^ 


§1 


• 

M.2«3  3 

lllll 


TH-  CJ  « 


II 


il. 


a  a 

II 


li 
I! 


cf 


236  NAVIGATION   INTERESTS. 

UNITED  STATES  VICE-CONSULATE, 

Copenhagen,  December  7,  1869. 

SIR  :  Your  letter,  dated  the  5th  of  last  month,  (addressed  to  George  P.  Hansen,  formerly 
a  United  States  consul,  but  now  returned  to  the  United  States,)  expressing  a  desire  to 
obtain  information  respecting  the  ship-building  and  navigation  interests  of  this  country, 
has  been  transmitted  to  me  by  the  Department  of  State,  and,  in  reply  thereto,  I  shall 
endeavor  to  give  you  an  explanation  as  satisfactory  as  I  have  been  able  to  obtain  it, 
giving  my  reply  in  the  same  order  as  your  different  questions  are  made. 

The  annexed  register  of  ships  belonging  to  this  country  has  been  issued  in  the  be 
ginning  of  this  year,  and  shows  very  near  the  present  state  of  the  Danish  merchant 
marine,  (of  course  with  the  exception  of  some  alterations  through  ships  lost,  ships  built 
or  bought  from  foreigners,  or  ships  having  shifted  owners,  since  the  register  issued.)* 
The  building  of  sailing-ships  is  in  a  tolerable  efficiBncy,  especially  in  the  province  ports, 
because  the  work  is  cheaper  there  than  in  this  city,  but  steamship  "building  is  only  car 
ried  on  at  this  port,  at  a  moderate  scale,  however,  there  being  only  one  establishment 
for  such  building,  and  the  same  is  working  at  high  prices.  The  merchant  marine  steam 
service,  on  account  thereof,  is  frequently  supplied  by  the  purchase  or  chartering  of 
foreign  steamers. 

The  government  offers  no  encouragement  to  ship-builders  and  ship-owners  by  way  of 
bounties,  drawbacks  or  exemption  from  taxation.  Ship-owners'  business,  however,  is 
free  ;  that  is  to  say,  not  subject  to  any  concession  such  as  many  other  lines  of  mer 
chants'  business,  but  it  is,  of  course,  the  same  as  all  other  situations,  subject  to  income 
tax  when  such  is  imposed.  Foreign  material  entering  into  the  construction  of  ships 
built  for  account  of  Danish  citizens  is  subject  to  duty  according  to  the  tariff  annexed, 
(oak  timber  only  is  free  of  duty.)  But  vessels  built  in  Denmark  for  foreigners'  account, 
or  foreign  vessels  repairing  average  suffered  or  other  damages,  are  in  that  respect  better 
situated,  as  they  may  obtain  a  permission  to  take  such  articles  as  metal  sheathing  and 
bolts,  chains,  anchors,  sails,  and  cordage,  &c.,  out  of  bond.  (The  prerogative  thus  al 
lowed  foreigners  arises  from  a  desire  to  attract  work  and  secure  the  labor  to  Danish 
citizens.)  The  material  taken  out  of  bond  is  not  treated  "  ad  valorem,"  but  in  con 
formity  with  the  said  tariff'  annexed.  Ships'  stores  for  consumption  on  the  voyage  are 
allowed  to  be  exported  out  of  bond. 

There  are  no  subsidies  paid  by  the  government  to  lines  of  Danish  or  foreign  steamers, 
nor  of  sailing-ships,  except  a  trifling  remuneration  of  postage  for  letters  carried,  brought 
as  well  as  sent ;  but  steamers  enjoy  a  separate  favor,  having  only  to  pay  port  charges 
according  to  the  quantities  of  goods  loaded  or  discharged,  and  reduced  into  tons,  or, 
better,  into  Danish  lasts ;  consequently,  they  do  not  pay  in  proportion  to  their  regis 
tered  tonnage. 

There  are  no  measures  adopted  to  improve  the  character  of,  and  secure  efficiency  in- 
the  merchant  marine  service,  and  that  service  bears  no  relation  to  the  navy  of  Den, 
mark.  If  the  royal  marine  department  occasionally  is  in  want  of  ship-room  for  any 
kind  of  transport,  the  department  charters  ships  in  the  same  way  as  private  charterers. 

Being  at  present  aware  of  no  further  suggestions  or  facts  deserving  to  be  mentioned, 
I  only  add  translations  of  the  laws  concerning  the  registration  and  measurement  of 
ships,  and  remain,  sir,  very  respectfully,  your  most  obedient  servant, 

L.  MEETSCHER, 
United  States  Vice-Consul. 

Hon.  JOHN  LYNCH, 

Chairman  Committee  on  Navigation  Interests. 


WASHINGTON,  D.  C.,  February  5, 1870. 

SiR:>I  have  the  honor  to  acknowledge  the  receipt  of  your  letter  of  the  4th  instant 
asking  me  to  send  to  the  special  committee  of  investigation  on  the  causes  of  the  decay 
of  American  commerce  any  communication  as  to  what,  in  my  judgment,  has  created 
those  causes,  at  least,  in  that  part  of  the  country  with  which  I  am  acquainted,  and 
suggesting,  at  the  same  time,  what  steps  I  would  consider  best  adapted  to  remove 
them,  and  to  establish  in  their  stead  an  invigorating  impulse  by  which  American  com 
merce  would  acquire  that  development  and  influence  which  the  extent  and  importance 
of  the  agriculture  and  industry  of  this  republic  give  it  a  right  to  expect. 

Among  various  causes,  too  extensive  to  enumerate  in  the  space  of  an  ordinary  com 
munication,  I  beg  to  state  that,  in  my  opinion,  the  following  are  the  most  important, 
viz: 

I.  Neither  the  American  government  nor  any  portion  of  the  American  people,  con 
stituted  as  a  body,  have  ever  done  nor  directly  attempted  anything  to  secure  the  object 
they  desire  to  attain. 

*  Accompanying  this  cominunicatioa.  were  Danish  official  documents,  which  have  been  omitted. 


NAVIGATION    INTERESTS.  237 

II.  The  commerce  of  those  localities  in  the  West  Indies  with  which  I  am  acquainted 
has  always  been  allowed  to  follow  its  primitive  course  without  any  efforts  from  the 
capitalists  or  the  government  of  this  country  to  take  advantage  of  their  proximity,  in 
order  to  alter  that  course  and  try  to  give  it  a  direction  to  these  shores. 

III.  Instead  of  that,  capitalists  of  Liverpool,  Glasgow,  Antwerp,  Bremen,  Hamburg, 
Paris,  Havro,  Marseilles,  both  as  individuals  and  as  corporations,  make  yearly  advances 
for  the  productions  to  bo  shipped  from  most  of  those  islands  and  from  Central  and 
South  Amorica,  and  secure  thereby,  at  very  advantageous  profits,  the  consignment  of 
such  produce. 

IV.  France  and  England,  especially  the  latter,  have  several  lines  of  steamers  touch 
ing  at  the  various  ports,  largely  subsidized,  and  offering  great  accommodations  for 
freight  and  passengers. 

V.  The  governments  of  England  and  Franco  watch  with  a  jealous  eye  over  their 
vessels  in  those  distant  ports,  and  whether  justly  or  not,  they  never  allow  the  slightest 
interference  wtth  them,  be  it  in  time  of  peace  or  not,  thus  securing  them,  at  all  times 
and  under  every  circumstance,  the  facility  of  taking  and  landing  freight.    That  policy 
has  been  earned  so  far  that  most  of  the  merchants  in  those  unsettled  countries  rather 
prefer,  for  security's  sake,  to  have  their  freight  under  English  or  French  flags. 

These  are  the  principal  causes,  according  to  my  judgment,  which  have  unfavorably 
influenced  the  development  and  progress  of  American  commerce  both  in  South  America 
and  in  the  West  Indies. 

A  contrary  course  would  insure  a  contrary  result : 

I.  The  American  government  should  lead,  by  initiatory  measures,  the  American  capi 
talists  to  invest  their  capital  in  the  trade  of  those  countries. 

II.  The  American  capitalists  should,  like  the  European,  make  advances  to  these 
different  localities,  in  order  to  secure  their  consignment  in  return. 

III.  The  American  government,  alike  with  England  and  France,  should  encourage  the 
establishment  of  frequent  communications  by  steam  with  all  these  countries. 

IV.  The  American  agents  in  all  the  different  ports,  while  the  country  is  in  a  state  of 
war,  should  be  instructed  not  to  allow  any  interference  with  American  vessels  with 
out  due,  formal,  and  immediate  redress  from  the  party,  whomsoever  it  be,  that  may 
have  caused  such  interference. 

A  few  years  of  thH  policy  would,  I  believe,  give  an  unprecedented  forward  impetus 
to  the  development  and  growth  of  American  commerce  in  this  hemisphere. 

Though  I  feel  confident  that  none  of  the  above  considerations  could  have  escaped  the 
sagacity  and  attention  of  the  committee,  yet  I  send  them  with  pleasure  as  a  proof 
of  my  sincere  desire  to  be  always  ready  to  give  my  service,  however  limited  it  be,  for 
the  good  and  prosperity  of  the  American  people. 

I  have  the  honor  to  be,  sir,  your  obedient  and  humble  servant, 

A.  TATE.* 
Hon.  JOHN  LYNCH. 


UNITED  STATES  CONSULATE  AT  BREMEN, 

January  18,  1870. 

SIR  :  In  compliance  with  your  favor  of  November  5,  1869,  transmitted  to  me  through 
the  Department  of  State,  Washington,  D.  C.,  making  inquiries  concerning  ship-build 
ing  and  navigation  interests  of  Germany,  I  have  the  honor  to  submit  the  following 
facts  collected  from  statistics  and  other  sources  of  information  upon  this  subject,  viz  : 

The  German  government  offers  no  inducement  to  German  ship-builders,  but  the  ma 
terial  entering  into  the  construction  of  ships  is  exempted  from  duty,  or  a  drawback  is 
allowed  on  it  upon  the  following  conditions :  The  builder  can  import,  free  of  duty,  all 
raw  materials  which  are  used  for  the  construction  of  vessels,  or  in  case  the  material  is 
partly  or  wholly  manufactured  hen;,  the  government  remits  the  duty  which  was  origi 
nally  paid  on  the  imported  raw  metal. 

The  ship-builder  who  claims  these  advantages  for  building  or  repairing  vessels,  be 
fore  commencing,  has  to  give  notice  to  the  custom  officer  in  whoso  district  the  vessel  is 
to  be  repaired  or  built,  by  presenting  a  declaration,  giving  an  exact  description  of  the 
vessel,  as  well  as  the  metal  articles  which  will  be  used  for  building  and  outfitting,  either 
in  their  manufactured  condition  imported,  or  the  amount  of  foreign  metal  used  for 
manufacturing  same. 

Those  articles  marked,  which  the  ship-builder  imports  from  foreign  countries  in  a 
manufactured  or  half-manufactured  condition,  must  be  presented  to  the  collector  of  his 
district  in  the  mentioned  declaration,  stating  the  various  shapes  and  condition  in  which 
said  articles  or  materials  are  to  be  imported,  which  articles  are  entered  according  to  the 
weight  and  number  of  pieces  in  the  Canto-register,  and  marked  with  a  stamp  in  order  to 
pass  the  custom-house  duty  free.  To  control  this,  the  custom  officer  inspects  the  vessel 

*  Recently  minister  plenipotentiary  from  the  Republic  of  Hayti  to  the  government  of  the  United  States. 


238  NAVIGATION   INTERESTS. 

while  she  is  built,  or  after  her  completion,  and  if  these  inspections  prove  that  the  de 
claration  is  made  correct,  said  articles  or  material  are  cancelled  out  of  the  Conto-register. 

-Should  the  articles  manufactured  here,  but  from  material  imported  from  other  coun 
tries,  be  used,  the  builder  has  to  state  the  amount,  quality,  and  kind  of  material  for 
every  article  in  his  declaration ;  on  this  it  passes  the  custom-house,  every  piece  being 
stamped,  -weighed,  and  entered  in  the  Conto-register  by  the  custom  officers.  The  num 
ber  of  pieces  and  the  weight  of  the  articles  manufactured  from  these  materials  is  also 
taken  on  their  completion  by  the  custom  officer  and  compared  with  the  Conto-register 
and  if  found  correct  said  materials  are  exempted  from  duty. 

The  bars  imported  for  the  use  of  building  coppered  vessels,  are  entered  in  the  samo 
manner,  but  when  the  bolts  are  cut  out  in  the  dock  it  must  be  done  in  the  presence  of 
an  officer  of  customs,  who  has  to  count  and  weigh  such  bolts,  and  see  that  they  are 
used  for  the  vessel,  and  on  his  certificate  the  bars  are  exempted  from  duty. 

All  declarations  must  be  sworn  to  by  the  ship-builder,  and  should  it  be  proved  that 
fraud  was  intended,  the  builder  is  deprived  of  these  advantages  forever,  besides  paying 
the  penalty. 

Ship  stores  are  allowed  to  be  taken  in  bond  for  consumption  without  being  subject 
to  any  duty. 

No  subsidies  whatever  are  paid  to  lines  of  German  steamers. 

Masters  are  required  to  take  on  board  his  vessel  one  apprentice  for  every  one  hundred 
"•lasts"  (a  last  equal  to  4000  pounds)  measurement  of  his  vessel.  These  apprentices, 
after  having  served  a  term  of  years,  are  advanced  to  the  grade  of  regular  sailors,  in 
which  capacity  they  are  required  to  serve  three  years,  at  which  time  they  can  make 
application  for  admittance  to  the  navigation  school,  where  they  have  to  pass  severe 
examinations  before  they  can  be  commissioned  as  second  and  first  officers  or  command 
ers.  As  every  able-bodied  man  is  required  to  enter  in  the  army  on  arriving  at  the  age 
of  twenty  years,  so  is  every  seaman  at  the  same  age  required  to  enter  the  navy. 
I  remain,  sir,  very  respectfully,  your  obedient  servant, 

R.  M.  HAUSON, 

United  States  Consul. 

Hon.  JOHN  LYNCH, 

Chairman  Committee  on  American  Navigation  Interests,  Washington,  D.  C. 


APPENDIX. 


STATISTICAL  TABLES. 


No.  I. — List  of  steamships  and  vessels  of  the  British  navy. 

BUILT  IN  GOVERNMENT  DOCK  YARDS. 


Description. 

Names. 

No.  of 

guns. 

Tons. 

Horse 
power. 

Of  what  built. 

Aboukir 

86 

3  091 

400 

Wood 

Achilles    

26 

6,121 

1,  250 

Iron  armor-plated. 

Paddle 

Advice 

197 

100 

Wood 

African          

36 

20 

Iron. 

Double  screw  

Agamemnon  

71 

3,  102 

600 

Wood. 

Paddle 

Alberta        ... 

391 

160 

Wood. 

Screw 

72 

3  117 

400 

Wood 

Screw 

Alert 

17 

751 

100 

Wood. 

Screw    

Algiers  

73 

3,  340 

600 

Wood. 

Screw 

Alison' 

54 

3  336 

800 

Wood. 

Screw 

Arethusa     

35 

3,141 

500 

Wood. 

Paddle 

Argus 

6 

981 

300 

Wood. 

Screw 

Ariadne  

26 

3,214 

800 

Wood. 

Atlas 

54 

3  318 

800 

Wood 

Screw* 

Aurora    

35 

2,558 

400 

Wood. 

Screw 

Brcchanto 

28 

2  667 

600 

Wood 

Paddle 

Barracouta 

6 

1  053 

300 

Wood. 

Screw  

Barrosa  

17 

1,700 

400 

Wood. 

Paddle 

Basilisk 

6 

1  031 

400 

Wood 

Double  screw   

Beacon  

4 

465 

120 

Composite  gun  vessel. 

Screw  and  paddle 

Bee 

42 

10 

Wood 

Screw      

Bellerophon  

14 

4,270 

1,000 

Iron  armor-plated 

Double  screw 

Bittern 

3 

663 

160 

Gun  vessel 

Screw    ... 

Blanche  

G 

1.268 

350 

Wood. 

Sail 

Boscawen 

20 

2  213 

Wood 

Double  screw 

Boxer      ...         .  . 

4 

465 

120 

Composite  cnn  vessel 

Sail 

Brilliant 

16 

954 

Wood 

Screw  .  ... 

Brisk 

16 

1  087 

250 

Wood 

Screw  

Bristol  

31 

3,  027 

600 

Wood. 

Sail   .     .. 

Britannia 

115 

3  995 

Wood 

Screw  

Briton  

10 

1,322 

350 

Wood. 

Screw  trim  vessel  .  . 

Bullfinch  

3 

663 

160 

Wood. 

Screw  

Bulwark  .      ... 

81 

3,716 

800 

Wood. 

Paddle 

Buzzard 

2 

980 

300 

Wood 

Screw  

Caesar  

76 

2,  767 

400 

Wood. 

Screw  
Screw  

Cadmus  

Caledonia 

16 

30 

1,  466 
4  125 

400 
1,000 

Wood. 
Armor-plated 

Sail  

Cambridge  

20 

3,  101 

Wood. 

Screw  

Cameleou 

7 

952 

200 

Wood. 

Paddle 

267 

150 

Wood 

Sail 

Castor 

22 

1  293 

Wood 

Screw  

Centurion  

68 

2,590 

400 

Wood. 

Screw 

Challenger 

18 

1  462 

400 

Wood 

Screw  

Chanticleer  

7 

950 

200 

Wood. 

Screw 

Charybdis 

18 

1  506 

400 

Wood 

Screw  

Clio     

18 

1,472 

400 

Wood. 

Screw 

Columbine 

3 

672 

150 

Wood. 

Paddle  

Confiance     

295 

100 

Wood. 

Screw 

74 

2  845 

500 

Wood 

Screw  

Constance 

35 

3,213 

500 

Wood. 

Screw  

11 

579 

150 

Wood. 

Screw  gun  vessel 

Cormorant         ... 

4 

695 

200 

Wood. 

Double  Screw  

Cracker  

4 

467 

120 

Composite  gun  vessel. 

Screw  

Double  screw  gun  vessel 

Cruiser  
Curlew    

5 
3 

752 
665 

60 
160 

Wood. 
Wood. 

Sail  ..... 

Daedalus 

16 

1  082 

Wood. 

Screw  ... 

G 

1  287 

350 

Wood 

Screw... 
Paddle 

Daphne  

4 

2 

1,081 
260 

300 
100 

Wood. 
Wood. 

Screw... 

Dauntless 

31 

1  575 

5SO 

Wood. 

Paddle    . 

Dee 

1 

704 

220 

Wood. 

Screw.".. 

Defiance...       ...«..., 

45 

3.475 

*800 

Wood. 

240 


NAVIGATION    INTERESTS. 


No.  I. — List  of  steamships  and  vessels  of  the  British  navy — Continued. 

BUILT  IN  GOVERNMENT  DOCK  YARDS. 


Description. 

Name. 

No.  of 
guns. 

Tons. 

Horse 
power. 

Of  what  bunt 

Screw 

4  406 

800 

Screw.^  

Diadem     

oo 

2  483 

800 

Screw 

Dido 

G 

1  268 

350 

Wood 

Screw  

Donecal 

81 

3*245 

800 

Wood 

Screw 

24 

2  483 

800 

Wood 

Screw  

Druid                 

10 

1  322 

350 

Wood 

Screw 

Dryad 

4 

1  086 

300 

Wood 

Screw  

Duke  of  "Wellington 

49 

3  771 

700 

Wood 

Screw 

69 

3  727 

800 

Wood 

Sail          .  .  >     . 

Durham 

20 

1  627 

Wood 

Double  screw  

Dwarf  ...'.  

4 

465 

120 

Composite  gun  vessel. 

Paddle     . 

Echo 

295 

140 

Wood 

Screw  

Edgar  

54 

3  094 

600 

Wood. 

Paddle                 

Elfin 

98 

40 

Wood 

Double  screw  

Elk       

4 

465 

120 

Composite  gun  vessel. 

Screw 

Emerald 

28 

2  913 

600 

W"ood 

Paddle  

Enchantress        

1 

835 

250 

Wood. 

Screw 

2  486 

500 

Wood 

Screw  

Enterprise 

21 

*993 

160 

Armor-plated 

Sail 

Excellent 

2  311 

Wood 

Screw.        

Exmouth 

76 

3  109 

400 

Wood 

Screw  

Falcon  

17 

751 

100 

Wood. 

Screw 

Favorite 

10 

2  094 

400 

Armor-plated 

Screw  

Fawn  

15 

751 

100 

Wood. 

Sail 

Fis^ard 

42 

1  069 

Wood 

Double  screw  

Flirt  

4 

464 

120 

Composite  gun  vessel 

Sail 

Flora 

10 

1  634 

Double  screw  

Fly    

4 

464 

120 

Composite  gun  vessel 

Screw 

Forte 

24 

2  364 

400 

Screw  

Fox      

1  131 

200 

Wood. 

Screw 

Frederick  William 

74 

3  241 

500 

Wood 

Screw  

Galatea   .  . 

2G 

3*227 

800 

Wood 

Screw 

3 

579 

150 

Wood 

Screw 

Gibraltar  . 

81 

3  729 

800 

Wood 

Paddle  

Gladiator  

6 

1,210 

430 

Wood. 

Screw 

Glasgow 

28 

3  037 

600 

Wood 

Double  screw   

Glutton    

2 

2  709 

Turret  ship  armor-plated. 

Screw 

Goliath 

60 

2  596 

400 

Screw  .. 

Greyhound    

5 

880 

200 

Wood. 

Screw 

Hannibal 

73 

3  136 

450 

Wood 

Screw 

Hastings    .  . 

50 

1  760 

200 

Wood. 

Paddle  

Helicon  

2 

837 

250 

Wood. 

Screw    .  . 

Hercules 

14 

5  234 

1  200 

Iron  armor-plated. 

Screw  

Hero  

3,148 

600 

Wood. 

Sail 

Hibernia 

104 

2  53U 

Wood 

Screw  

Hood  

54 

3,308 

600 

Wood. 

Screw 

Howe 

84 

4  245 

1  000 

Wood. 

Paddle     

Hydra  

1 

818 

220 

Wood. 

Screw 

Icarus 

3 

580 

150 

Wood 

Screw  

Immortalit6  

28 

3  059 

600 

Wood. 

Sail 

Impregnable 

78 

2  406 

Wood 

Screw      .  . 

Inconstant          

16 

4  066 

1,000 

Iron  cased  with  wood. 

Sail 

2  098 

Wood 

Double  screw 

Iron  Duke 

14 

3  774 

800 

Iron  armor-plated. 

Screw 

4 

2  642 

400 

Screw 

James  Watt 

71 

3*083 

600 

Wood. 

Screw  gun  vessel  

Jasewr  

5 

427 

80 

Wood. 

Screw 

Jason 

17 

1  711 

400 

Wood. 

Screw  

Juno     

6 

1  462 

400 

Wood. 

Screw  gun  vessel 

Landrail 

5 

427 

80 

Wood. 

Double  screw  gun  vessel 

Lapwing    

3 

663 

160 

Wood. 

Sail  

Screw 

Liberty  
Liffey          

12 
30 

428 
2  654 

"  600 

Wood. 
Wood. 

Paddle  

Lightning  

2 

296 

100 

Wood. 

Screw 

Lion 

60 

2  611 

400 

Wood. 

Screw  

Liverpool  

30 

2,656 

600 

Wood. 

Paddle 

Locust 

1 

284 

100 

Wood. 

Screw  

London  

72 

2  687 

500 

Wood. 

Screw 

Lord  Clyde 

24 

4  067 

1  000 

Armor-plated. 

Screw  

Lord  Warden  

18 

4  080 

1,000 

Armor-plated. 

Screw 

Lyra 

7 

488 

60 

Wood. 

Double  screw  gun  vessel  . 

Magpie  

3 

665 

160 

Wood. 

Screw 

Marlborouf'h 

98 

4  000 

800 

Wood. 

Sail 

Martin 

10 

481 

Wood. 

Paddle 

Medusa  . 

2 

889 

312 

Wood. 

Screw     

Melpomene  

28 

2  861 

600 

Wood. 

Screw 

Mersey 

36 

3  733 

1,  000 

Wood. 

Screw             

Miranda  

15 

1  039 

250 

Wood. 

Screw  turret  ship 

Monarch 

5  102 

1  100 

Iron,  armor-plated. 

Screw... 

Mutine... 

17 

883 

200 

Wood. 

NAVIGATION-  INTERESTS. 


241 


No.  1.— List  of  steamships  and  vessels  of  the  British  navy — Continued. 

BUILT  IN  GOVERNMENT  DOCK  YARDS. 


Description. 

Name. 

No.  of 
guns. 

Tons. 

Horse 
power. 

Of  what  built. 

Myrmidon 

4 

695 

220 

"Wood 

Sail                      

Nankin  

50 

2  049 

Wood 

35 

2  6G5 

400 

Wood 

Screw                  

Nassau  .    .   . 

695 

150 

Wood 

78 

2  830 

500 

Wood 

Screw                 

Nereus      

G 

1  094 

WV>od 

23 

3  035 

600 

Wood 

Newport 

425 

80 

Wood 

Screw  

Niger.  .  . 

13 

1  072 

350 

Wood 

Nile 

78 

2  622 

500 

Wood 

Screw  gun  vessel  

Nimblo  

5 

428 

80 

Wood 

Niobo 

4 

1  083 

300 

Wood 

Screw                         ...     . 

Nympho    

4 

1  084 

300 

Wood 

Screw 

Ocean 

24 

4  047 

1  000 

Screw 

Octavia 

35 

3  161 

500 

Wood 

Screw  

Orlando  

46 

3  740 

1,000 

Wood 

I'aildle 

Osborno 

1  536 

450 

Wood 

Screw     

Pallas  

6 

2  372 

600 

Screw  "Tin  vessel 

Pandora 

5 

426 

80 

Wood 

Screw 

Pearl    

17 

1  4G9 

400 

Wood 

Double  screw  

Penelope  

11 

3,096 

600 

Screw 

Perseus 

15 

955 

200 

Wood 

Screw  

Peterel  

3 

6G9 

150 

Wood. 

Screw 

Phaeton 

28 

2,396 

400 

Wood 

Screw  

Phrcbo    

30 

2  896 

500 

Wood 

Double  screw  gun  vessel 

Plover 

3 

GG3 

160 

Wood 

Paddle 

Porcupine 

3 

382 

132 

"Wood 

Sail  

President  

31 

1  537 

Wood 

Screw 

Prince  Consort 

24 

4  045 

1  000 

Screw     

Prince  Regent 

78 

2  762 

500 

Wood 

Sail 

Prince  of  \\Tales 

115 

2  646 

Wood 

Sail     

Princess  Charlotte 

12 

2  443 

Wood 

73 

3  129 

400 

W'ood 

Paddle 

Pyscho  .... 

o 

835 

250 

W"ood 

Screw  

Pylades  

17 

1  278 

350 

Wood 

Queen 

74 

3  249 

500 

Wood 

Screw 

Racer  

11 

579 

150 

Wood 

Screw 

Ilaccoon 

22 

1  4G7 

400 

W'ood 

Screw 

Ranger  .... 

427 

80 

Wood 

Screw  

Rapid  

11 

672 

150 

Wood 

Screw 

Rattlesnake 

17 

1  705 

400 

Wood 

Screw.  

Reindeer  

7 

953 

200 

Wood 

Renown 

54 

3  319 

800 

Wood 

Screw 

Repulse  

12 

3  749 

800 

Armor-plated. 

Screw  

Research  

4 

1,  253 

200 

Armor-plated. 

Screw 

Revenge 

73 

3  322 

800 

Wood 

Screw  

Rifleman  

5 

486 

100 

Wood. 

Screw 

Rinaldo 

7 

951 

200 

Wood 

Double  screw  gun  vessel 

Ringdove  

3 

666 

160 

Wood. 

Robust 

81 

3  716 

800 

Wood 

Screw 

Rodney 

72 

2  770 

500 

Wood. 

Screw  

Rosario  

3 

673 

150 

Wood. 

Sail 

Royal  Adelaide 

26 

2  446 

Wood 

Screw    

Royal  Albert  

107 

3  726 

500 

Wood. 

Royal  Alfred 

18 

4  068 

800 

Armor-platod. 

Screw    

Royal  George  .... 

72 

2  616 

400 

Wood. 

Royalist 

3 

669 

150 

Wood 

Screw 

Royal  Oak 

24 

4  056 

800 

Wood. 

Screw  turret  ship  
Screw 

Roval  Sovereign  
Royal  William 

5 
72 

3,765 
2  849 

800 
500 

Wood. 
Wood 

Screw  ram       

Rupert  

3,159 

700 

Iron-clad. 

Screw 

St.  George 

72 

2  864 

500 

Wood 

Screw 

St.  Jean  d'  Arc  

81 

3,200 

600 

Wood. 

Sail 

St.  Vincent 

26 

2  612 

Wood 

Paddle 

Salamander  

2 

818 

220 

Wood. 

Paddle 

Salamis 

2 

835 

250 

Wood. 

Screw 

Satelite  

17 

1,  462 

400 

Wood. 

Scout 

21 

1  462 

400 

Wood. 

Screw 

Scylla  

16 

1,467 

400 

Wood. 

Sea-^ull 

3 

663 

160 

Wood. 

Screw  mortar  ship 

Sea-horse  

12 

1,258 

200 

Wood. 

Sail 

Sea-lark 

8 

319 

Wood. 

Screw 

Severn     

28 

2  767 

500 

Wood. 

35 

2  667 

600 

Wood 

Screw 

Shearwater  

3 

669 

150 

Wood. 

Screw 

Sirius 

6 

1  268 

350 

Wood. 

Screw 

Spartan         

6 

1  269 

350 

Wood. 

Screw  gun  vessel  

Speedwell  

5 

428 

80 

Wood. 

Paddle  .  . 

Sphinx... 

C 

1,061 

500 

Wood. 

16  N  I 


242 


NAVIGATION   INTERESTS. 


No.  I. — List  of  steamships  and  vessels  of  the  British  navy — Continued. 

BUILT  IN  GOVERNMENT  DOCK  YARDS. 


Description. 

Name. 

No.  of 

guns. 

Tons. 

Horse 
power. 

Of  what  built. 

Paddle 

Spiteful    

6 

1  054 

280 

Wood. 

Paddle 

Spitfire 

432 

140 

Wood 

Sail 

Squirrel       .       .     ... 

8 

428 

Wood. 

Screw  

Sultan  

12 

5,226 

1,200 

Iron  armor-plated. 

Double  screw  gun  vessel 

Swallow 

3 

664 

160 

Wood 

Screw  

Sylvia  

5 

695 

150 

Wood. 

Screw 

Tenedos 

6 

1  268 

350 

Wood 

Paddle    ...         

Terrible  

19 

1  850 

800 

Wood. 

Thalia 

6 

1  459 

400 

Wood. 

Double  screw         

Thistle  

4 

465 

120 

Composite  gun  vessel. 

Thunderer 

4  406 

800 

Screw                     .  .   ... 

Topaze 

31 

2*659 

600 

Wood. 

Serew  

Screw 

Trafalgar  

Undaunted 

GO 
28 

2,  900 
3  039 

500 
600 

Wood. 
Wood. 

Paddle      

Valorous  

12 

1  257 

400 

Wood. 

Screw 

Vestal 

4 

1  081 

300 

Wood. 

Screw      .  .     . 

Victor  Kmiuiui'l 

79 

3  087 

600 

Wood. 

Screw  

Victoria  

102 

4,127 

1,000 

Wood. 

Paddle 

Victoria  and  Albert 

2 

2  345 

600 

Wood. 

Sail     

Victory  

12 

2,  164 

Wood. 

Sail 

Vindictive 

2 

1  758 

Wood. 

Paddle    

Virago  .  .  . 

6 

1,059 

220 

Wood. 

Paddle 

Vivi3 

350 

160 

Wood 

Double  screw  gun  vessel  .  . 

Vulture  

3 

663 

160 

Wood. 

Screw 

"Wasp 

13 

974 

100 

Wood 

Paddle  

Widgeon 

164 

90 

Wood. 

Sail 

"Winchester 

12 

652 

Wood 

Screw                

"Wolverine 

17 

1  703 

400 

Wood. 

Double  screw  gun  vessel  .  .  . 

Wood-lark  

3 

663 

160 

Wood. 

Screw      .        " 

Zealous 

20 

3  716 

800 

Armor-plated. 

Screw  

Zebra  

7 

951 

200 

Wood. 

STEAMSHIP  FOR  THE  DEFENSE  OF  THE  COLONIES,  BUILT  IN  GOVERNMENT  DOCK  YARD. 


Screw 

Nelson 

72 

2  736 

500 

Wood 

List  of  screw  steam  gunboats  from  212  to  273  tons. 

BUILT  IN  GOVERNMENT  DOCK  YARDS. 


Name. 

Horse 
power. 

Name. 

Horse 
power. 

Bruiser            .             ..        .             ....... 

60 

Lark  

60 

Cherub 

60 

GO 

Croiner 

60 

Netley 

60 

Janus  

40 

Orwell  

CO 

1     -,.                   >-.              .J-^V  ,;* 

••'•*: 

NAVIGATION   INTERESTS. 
No.  I. — List  of  steamships  and  vessels  of  the  British  navy— Continued. 

BUILT  IX  PRIVATE  YARDS  BY  CONTRACT. 


243 


Description. 

Name. 

No.  of 
guns. 

Tons. 

Horse 
power. 

Of  what  built 

Active 

8 

o  322 

600 

Paddle                   

Adder 

241 

100 

Wood 

2 

1  794 

400 

Screw              

28 

6  621 

1  350 

Screw  gun  vessel  
Paddle    •                

Aljit'rine  

3 
3 

299 
650 

80 
260 

Wood. 

Sail      

Asia 

2  289 

Wood. 

Paddle 

Asn 

112 

50 

Wood 

Screw  gun  vessel  

Assurance 

4 

681 

200 

Wood. 

Double  screw 

14 

3  774 

800 

Double  screw  

4 

4G7 

120 

Paddle 

267 

80 

Paddle           ... 

Black  Eafrlo 

540 

260 

Wood. 

Blick  Print1'1 

28 

6  109 

1  250 

Screw           

Buffalo 

2 

440 

'    80 

Paddle  

Bustler 

217 

100 

Wood. 

Paddle 

319 

150 

Wood. 

Double  screw  turret  ship  .  .  . 
Paddle 

Captain  s.. 

6 
2 

4,  272 
676 

900 
350 

Armor-plated. 

Screw  

Chasseur  

543 

164 

70 
30 

Iron. 

Screw 

16 

1  296 

250 

Wood 

Dart 

5 

428 

80 

"Wood 

Screw 

16 

3  720 

600 

Screw  

Screw 

Despatch  

2 

'257 
654 

40 

100 

Wood. 

Sail  

Eagle 

lg 

1  723 

Wood 

Screw 

Eclipse 

6 

1  273 

350 

Wood 

Sail     

4 

1  780 

Wood 

16 

1  954 

200 

Paddle       

'  165 

76 

Wood 

Paddle 

313 

1°0 

Sail      • 

20 

2  285 

Wood 

Paddle  

Double  screw 

Grinder  

4 

'332 
464 

150 
120 

Wood. 

Paddle  
Double  screw  

Harpy  

Hart 

.   1 
4 

344 

464 

200 
120 

Iron. 
Composite  gun  vessel* 

Paddle 

Hearty 

221 

100 

Wood 

Screw  

Hector 

18 

4  089 

800 

Iron  armor-platod. 

Screw 

21 

1  161 

250 

Wood 

Screw  i  

Himalaya 

2 

3  453 

700 

Iron 

Double  screw 

4 

464 

120 

Double  screw  

Hotspur 

2 

2  637 

600 

Iron  armor-plated  ram. 

Screw 

2 

638 

80 

Double  screw    ... 

Invincible 

14 

3  774 

800 

Iron  armor-plated. 

Paddle  

Jackal 

2 

340 

150 

Iron. 

Screw  gun  vessel 

Lee 

5 

431 

80 

Wood 

Screw  gun  vessel  

Leven 

3 

300 

80 

Wood. 

Paddle      . 

1 

387 

180 

Wood 

Double  screw  

Screw 

Lynx  

4 
13 

464 
1  034 

120 

200 

Composite  gun  vessel. 
Wood 

Screw  

Manilla 

'295 

70 

Iron 

Paddlo 

135- 

50 

Screw              .     ... 

Me^aera 

6 

1  395 

350 

Iron. 

Double  screw  

Midge 

4 

464 

120 

Composite  gun  vessel. 

Screw 

34 

6  621 

1  350 

Screw  

Minx 

303 

10 

Iron. 

Paddle 

212 

130 

Wood 

Screw  gun  vessel  

Mullet 

5 

430 

80 

Wood. 

28 

6  621 

1  350 

Iron  armor-plated* 

Paddle 

Oberon 

3 

*649 

260 

Iron. 

Paddlo  

Otter  

1 

237 

120 

Wood. 

Screw 

Polter 

250 

40 

Wood. 

Screw  

Pembroke  

25 

1,758 

200 

Wood. 

Screw  gun  vessel 

Penguin 

5 

431 

80 

Wood. 

Double  screw  

Pert  

4 

464 

120 

Composite  gun  vessel. 

Double  screw  gun  vessel 

Philomel 

3 

664 

160 

Wood. 

Paddlo  

Pigmy  

3 

227 

100 

Wood. 

Paddle 

Pioneer 

2 

142 

34 

Wood. 

Screw  turret  ship  

Prince  Albert  

4 

2,537 

500 

Armor-platod. 

Paddlo 

Princess  Alice 

270 

120 

Iron. 

Paddle 

4 

590 

160 

Iron 

Paddle 

Red  polo 

1 

360 

160 

Wood. 

Screw  

Resistance  

16 

3  710 

600 

Iron,  armor-platod. 

Double  screw 

Rocket 

4 

464 

120 

Composite  gun  vessel. 

Screw  turret  ship  

Scorpion          

4 

1  833 

350 

Iron,  armor-plated. 

Paddle... 

Scotia... 

268 

114 

Wood. 

244  NAVIGATION    INTERESTS. 

No.  I. — List  of  steamships  and  vessels  of  the  British  navy — Continued. 


BUILT  IN  PRIVATE  YARDS  BY  CONTRACT. 


Description. 

Name. 

No.  of 

guns. 

Tons. 

Horse 
power. 

Of  what  built. 

Sail 

Serin  ^apatam     .  ... 

1  152 

Wood 

Screw  gun  vessel  

Serpent  

4 

G95 

200 

Wood 

Sharpshooter 

G 

503 

160 

Paddle   

Sheerness  

233 

114 

Wood 

Screw 

Simoon 

4 

1  980 

400 

Screw  gun  vessel 

Slaney  

3 

301 

80 

Wood 

Screw  gun  vessel  

Sparrow-hawk  

4 

676 

200 

Wood. 

Paddle                      

Sprightly           .   . 

234 

100 

Wood 

Screw  gun  vessel  

Star  

4 

695 

200 

Wood. 

Screw  (run  vessel 

Steady     . 

5 

431 

80 

Wood 

Screw  

Supply  

o 

633 

80 

Iron. 

Screw 

Swiftsure 

14 

3  893 

800 

Screw     

Tamar     

2 

2.  812 

500 

Iron. 

Double  screw 

Teazer 

4 

464 

120 

Screw      

Terror          

16 

1  971 

200 

Iron  armor-plated 

Paddle 

Thais 

302 

80 

Screw             

Thunder 

14 

1  4G9 

150 

Armor-plated 

Screw 

Thunderbolt 

16 

1  973 

200 

Screw  gun  vessel 

Torch 

5 

423 

80 

Wood 

Trincomaleo  

16 

1  OC6 

Wood. 

Paddle 

Triton 

3 

654 

260 

Iron 

Screw      

Triumph          .  .  . 

14 

3  893 

800 

Iron  armor-plated. 

Paddle 

Trusty 

319 

150 

Iron 

Double  screw            

Turtle  

37 

20 

Iron. 

Screw 

Urgent 

4 

1  981 

400 

Screw      

Valiant 

18 

4'  063 

800 

Iron 

Double  screw 

14 

3  774 

800 

Double  screw  gunboat 

Viper 

2 

737 

160 

Iron  armor-plated 

Double  screw  gunboat  

Vixen  

2 

754 

160 

Iron  &  wood  armor-plated. 

Screw              ° 

Vola^e 

8 

2  322 

GOO 

Iron  cased  with  wood 

Screw,  hydraulic  gunboat  .  . 
Paddle 

Waterwitch  
Weser 

2 

777 

167 

Iron,  armor-plated. 
Wood 

Paddle  

Wildfire  . 

186 

76 

Wood. 

Screw  turret  ship  

Wivern  

4 

1,899 

350 

Iron,  armor-plated. 

Screw                    .  . 

Warrior  . 

32 

6  109 

1  250 

Iron  armor-plated. 

INDIAN  TROOP  SHU'S  BUILT  BY  CONTRACT. 


Screw  

Crocodile  . 

3 

4  173 

700 

Iron. 

Sccew 

Euphrates 

3 

4  173 

700 

Paddle 

Hastv 

120 

40 

Wood. 

Screw 

3 

4  173 

700 

Screw 

Malabar 

3 

4  173 

700 

Iron. 

Paddle  

Prompt  

120 

40 

Wood. 

Screw 

Serapis 

3 

4  173 

700 

Iron 

HER  MAJESTY'S  SHIPS  FOR  THE  DEFENSE  OF  THE  COLONIES,  BUILT  BY  CONTRACT. 


Double  screw  turret  ship  . 

Abysinnia  

4 

1  854 

200 

Iron  armor-plated. 

4 

2  107 

250 

Double  screw  turret  ship 

Ma^dala     ... 

4 

2  107 

250 

Iron  armor-plated. 

NAVIGATION   INTERESTS. 


245 


No.  I. — List  of  screw  steam  gun-boats  from  212  to  273  tons. 

BUILT  IN  PRIVATE  YARDS  BY  CONTRACT. 


Name. 

Horse 
power. 

•         Name. 

Horse 
power. 

Albacoro 

CO 

Magnet 

GO 

Banterer  

60 

Onyx     .  .             

20 

60 

60 

Britomart  

60 

Pheasant                 

60 

Bull  fro  "• 

60 

CO 

Bustard  ....... 

60 

Procris                                  

60 

Clinker..  

60 

Rainbow  

CO 

Cockatrice 

60 

60 

Cockchafer  

60 

Redwing             

GO 

Dapper 

CO 

Skipi'ick 

GO 

Doterel  .     .. 

60 

Skylark                               

GO 

Dove 

60 

60 

Earnest 

60 

60 

Earno  

60 

Spider        

60 

Fancy 

60 

GO 

Fervent  

GO 

Staunch  200  tons      

25 

Ji^irm 

60 

Stork 

60 

forester  ... 

CO 

Surly                                              

no 

60 

Thrasher 

60 

Grasshopper 

60 

Trinculo 

60 

Havock 

60 

Tyrian 

60 

Heron 

60 

Watchful 

40 

Hind  

GO 

Weazel                    .        

GO 

Hunter 

40 

Whiting 

GO 

Hyena  ...           ... 

60 

Wizard                                          

60 

Jackdaw 

GO 

40 

Linnet 

GO 

No.  II. — Statement  of  the  number,  names,  tonnage,  guns,  and  location  of  vessels  belonging  to 
and  connected  icith  the  United  States  Navy  on  the  1st  day  of  April,  1861. 


Name. 

CO 

<S 

03 

Where  built. 

When 
built. 

Situation. 

Where. 

6IHPS  OF  THE  LINE. 

1.  Pennsylvania  .. 
2.  Columbus  
3.  Ohio  

120 

80 

84 

3,241 
2,480 
2,757 

Philadelphia  
Washington  
Brooklyn         .  .   . 

1837 
1819 
1820 

In  commission  .  . 
In  ordinary  
In  commission  . 

Receiving  ship,  Norfolk. 
Norfolk. 
Reccivin"1  ship,  Boston. 

4.  North  Carolina. 

84 

2,633 

Philadelphia  

1820 

....do  

Receiving  ship,  N.  Ycrk. 

5.  Delaware  

84 

2  633 

Gosport  * 

1820 

In  ordinary 

Norfolk. 

6   Vermont 

84 

2  633 

1848 

do 

7.  New  Orleans  .  .  . 
8.  Alabama  

84 
84 

2,  805 
2,633 

Sackett's  Harbor.. 
Kittery 

1815 

1818 

On  the  stocks... 
.do      

Sackett's  Hurbor. 
Kittery. 

9.  Virginia 

84 

2  633 

1818 

do 

Boston 

10.  New  York  

84 

2,633 

Gosport 

1818 

do 

Norfolk. 

FRIGATES. 

1.  Constitution  ... 
2.  United  States  .  . 

50 

50 

1,607 
1,607 

Charlestown  
Philadelphia  

1797 
1797 

In  ordinary  
do  

Annapolis. 
Norfolk. 

3.  Potomac 

50 

726 

Washington 

1821 

do 

New  York. 

4.  Brandy  wine  .... 

50 

,726 

do       

1825 

.    do    

Do. 

5   Columbia 

r>0 

,726 

do 

1836 

do 

Norfolk. 

6.  Congress   

50 

,8G7 

Kittery       

1841 

In  commission 

Coast  of  Brazil. 

7.  Ran  tan  

50 

,726 

Philadelphia  

1843 

In  ordinary  

Norfolk. 

8.  St.  Lawrence 

50 

,726 

Gosport* 

1847 

.do         "..... 

Philadelphia. 

<i   Santeo 

50 

726 

Kittery 

1855 

do 

Kittery. 

iO.  Sabine    .. 

50 

,726 

Brooklyn 

1855 

In  commission 

Off  Pensacola. 

SLOOPS  OF  WAR. 

1.  Cumberland. 
2.  Savannah  ... 

24 

94 

1,726 
1,  726 

Charlestown  
Brooklyn    

1842 
1842 

In  commission  .  . 
In  ordinary  

Hampton  Roads. 
New  York. 

3.  Constellation 
4.  Macedonian  . 

22 
09 

1,452 
1,341 

Rebuilt,  Gosport.. 
Gosport      .... 

1854 
1836 

In  commission  .  . 
.    do  

Coast  of  Africa. 
In  the  Gulf. 

5.  Portsmouth  . 
6.  Plymouth... 
7.  St.  Mary's... 
8.  Jamestown.. 

22 
22 
22 
99 

1,  022 
989 
958 
985 

Kittery  
Charlestown  
Washington  
Gosport 

1843 
1843 
1844 
1844 

....do  

In  ordinary  
In  commission  .  . 
In  ordinary  

Coast  of  Africa. 
Norfolk. 
Pacitic  squadron. 
Philadelphia. 

9.  Germantown 

22 

939 

Philadelphia  

1846 

....do  

Norfolk 

246  NAVIGATION   INTERESTS. 

No.  II. —  Vessels  belonging  to  and  connected  with  the  United  States  Navy,  #c. — Continued. 


Name. 

1 

O 

Tonnage. 

"Where  built. 

When 
built. 

Situation. 

Where. 

SLOOPS  OF  WAR— 
Continued. 

10    Saratoga 

00 

882 

Kittery 

184° 

11.  John  Adams  .  .  . 

9,0 

700 

Rebuilt,  Gosport 

1831 

do 

East  Indies 

12.  Viucennes  

90 

700 

Brooklyn 

1826 

13.  Vandalia  

20 

783 

Philadelphia 

1828 

In  commission 

On  way  to  East  Indies 

14.  St.  Louis  

90 

700 

1828 

do 

Off  Peusacola 

15.  Cyane  

9,0 

792 

C  harl  e  st  own 

1837 

do 

Pacific  squadron 

16.  Levant  

90 

792 

1837 

do 

Do 

17.  Decatur]  

16 

566 

do 

1839 

San  Francisco 

18.  Marion  

16 

566 

1839 

do 

Portsmouth  N  H 

19.  Dale  

16 

566 

Philadelphia 

1839 

do 

Do 

20.  Preble    

16 

566 

Kittery 

1839 

do 

BRIGS. 

1.  Bainbridge  
2.  Perry  

6 
6 

259 

280 

Charlestown  
Gosport  

1842 
1843 

In  ordinary  
..do        

Boston. 
New  York. 

3.  Dolphin  

4 

224 

Brooklyn 

1836 

do 

Norfolk 

STORE  VESSELS. 

1.  Eelief  

9 

468 

Philadelphia 

1836 

Coast  of  Africa 

2.  Supply  

4 

547 

1846 

do 

In  the  Gulf 

3.  Release  

1 

327 

do 

1855 

New  York 

PERMANENT    STORE 
AND       RECEIVING 
SHIPS. 

1.  Independence  .  . 

2  257 

1814 

2   Alleghany 

989 

Pittsbur<r  Penn 

1847 

do 

3.  Princeton   .  ... 

900 

Rebuilt   Boston 

1851 

do 

4.  Warren  

601 

Charleston 

1826 

do 

5.  Fredonia  

800 

Purchased 

1846 

do 

Store  ship  Valparaiso. 

6,  i'almout  h  

703 

1827 

do 

SCREW  FRIGATES. 

1.  Niagara  .  . 

12 

4  580 

1855 

2.  Roanoke  

40 

3  400 

Gosport 

1855 

In  ordinary 

New  York 

3   Colorado 

40 

3  400 

do 

1855 

do 

4.  Merriinack  

40 

3  200 

C  harle  stown 

1855 

do 

Norfolk 

5   Minnesota 

40 

3  200 

1855 

do 

6.  Wabash  

40 

3  200 

Philadelphia  

1855 

....do  

New  York. 

7.  Franklin  

**) 

3  680 

Kiotery 

1854 

Unfinished 

Portsmouth  N.  H. 

1ST    CLASS    STEAM 
SLOOPS. 

Screw. 
1.  San  Jacinto  

13 

1  446 

Brooklyn  

1850 

In  commission 

Coast  of  Africa. 

2.  Lancaster  

00 

2  360 

Philadelphia 

1858 

do 

3  Pensacola 

19 

2  158 

1858 

Unfinished 

4.  Brooklyn  

95 

2,070 

New  York  

1858 

In  commission  .  . 

Off  Pensacola. 

5   Hartford 

16 

1  990 

1858 

do 

6   Richmond 

14 

1  929 

Norfolk  

1858 

do 

Side-wheel. 
1.  Mississippi  

11 

1  692 

Philadelphia...... 

1841 

Repairing       

Boston. 

2.  Susqnehanna.  .  . 

15 

2,450 

do  

1850 

In  commission  .  . 

Mediterranean. 

3.  Powhatan  

11 

2,415 

Gosport. 

1850 

do 

New  York. 

4.  Saranac 

o 

1  446 

Kittery 

1848 

do 

Pacific  squadron 

2D    CLASS    STEAM 
SLOOPS. 

Screw. 
1.  Mohican  

6 

994 

Kittery     .     .  . 

1858 

In  commission  .  . 

Coast  of  Africa. 

2    Narra^ansett 

5 

804 

Boston" 

1858 

do 

Pacific  squadron 

3.  Iroqudis  
4   Pawnee 

6 

4 

1,  016 
1  289 

New  York  
Philadelphia 

1858 
1858 

....do  

do 

Mediterranean. 

5.  Wyoming  

6 

997 

do 

1858 

do 

Pacific  squadron. 

6    Dacotah 

6 

998 

1858 

do 

East  Indies 

7.  Pocahontas  
8.  Seminole  .  .  . 

5 
3 

C94 
801 

Purchased  
Peusacola  .  .  . 

1855 

1858 

....do  

...do.., 

Atlantic  coast. 
•  Brazilian  squadron. 

NAVIGATION   INTERESTS.  247 

No.  II. — Vessels  belonging  to  and  connected  with  the  United  States  Navy,  <fc. — Continued. 


Name. 

o 

Tonnage. 

Where  built. 

When 
built. 

Situation. 

Where. 

3D  CLASS  STEAMERS. 

Screw. 
1    WVandotto 

«> 

464 

Purchased       .  ... 

1858 

In  commission  .  . 

Off  Pensacola. 

o   Mohawk  *      .  . 

•> 

464 

....do  

1858 

...do  

In  the  Gulf. 

3   Crusader  

R 

549 

...do  ... 

1858 

....do  

Do. 

*> 

464 

..  do  

1858 

...do  .. 

Coast  of  Africa. 

5   Mystic     

5 

464 

....do  

1858 

....do  

Do. 

Side-wheel. 
1   "Water  Witch 

T 

378 

Washington  

1845 

Propar'g  for  sea 

Philadelphia. 

2   Michigan 

582 

Erie       ° 

1844 

Winter  quart'rs 

Erie,  Pa. 

3    Pulaski 

1 

395 

Purchased     .  .   . 

1858 

In  commission  . 

Brazil  snuadron. 

4   Saginaw      

T 

453 

San  Francisco  

1858 

....do  

East  Indies. 

STEAM  TENDERS. 
Screw* 
1   John  Hancock 

T 

382 

Charlestown  

1850 

In  ordinary  

San  Francisco. 

1 

217 

Purchased 

1858 

In  commission 

Used  as  a  transport. 

c 

New  York 

Unfinished. 

RECAPITULATION. 


Vessels  . 
Tonnage 
Guns  — 


118,  460 
2,409 


248 


NAVIGATION   INTERESTS. 


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NAVIGATION   INTERESTS. 


No.  IV. — Statement  of  vessels  sold  by  the  Navy  Department  from  April  1,  1861,  to  April  1. 
1865,  inclusive;  also  from  May  1,  1868,  to  date. 


Name  of  vessel. 

Where  sold. 

When  sold. 

Amount  re 
ceived. 

New  Orleans 

June          18G4 

$14  r)GO  00 

Ckotank  

New  York  

1861 

700  00 

Key  West 

Nov           1864 

Falmouth  

Aspinwall,  N.  G-  

Oct.      28  1863 

............ 

Isilda 

Key  West 

•     1863 

"Mohawk     

Philadelphia  

July    12*  1864 

5  000  00 

Boston  Mass 

Fob      20   1865 

10  000  00 

Patroon                  

Philadelphia          

Dec      30  1862 

11  200  00 

Planter* 

Sept     10  186° 

Pulaski                          

Montevideo      .  . 

•  •    1863 

....    iqgo 

Aroostook               ..   -  -  

Honf  Konf 

Sept.    —  1869 

16  094  74 

Oct       21   1869 

30  000  00 

Norfolk 

Sept     10  1868 

5  250  00 

Oct       28  1868 

21  687  50 

Atlanta"                          .... 

Philadelphia 

May      4  1869 

25  700  00 

Augusta      

New  York  

Dec.      1  1868 

20  700  00 

Philadelphia 

Sept      1  1868 

9  000  00 

Buckthorn         

Pensacola  

Sept.     7  1869 

3  000  00 

Chenango  
De  Soto                         -            

Philadelphia  
New  York   

Oct.     28,  1868 
Sept.   30  1868 

21,687  50 
47  600  00 

Don 

do 

Au"1     29   1868 

18  000  00 

Florida                        

Philadelphia      . 

Dec       5  1868 

19  200  00 

Juno      4  1869 

7  150  00 

Grampus   

Mound  City  

Sept.      1,  1868 
June    26  I860 

450  00 
33  000  00 

Now  York 

May    14  1860 

13  200  00 

Lenapco       ......  

Portsmouth  

Au"-.    26  1868 

17  900  00 

Now  Orleans 

Oct       12  1868 

17  000  00 

Maratanza      ..     .     

Portsmouth  

Au<*.    26,  1863 

32  700  00 

New  York 

Sept    30  1868 

14  100  00 

..  do  

May      8  1869 

55  300  00 

Philadelphia 

Oct      28  1868 

21  687  50 

Portsmouth         .....     .. 

June    17  1869 

50  000  00 

Mendota  ...  

Philadelphia  

May    25,  1P63 

18  750  00 

W^ashiuirton 

Sept.      1  1868 

35  000  00 

Pansy              ....     ..  ....  .  

Mound  City  

Sept.     1,  1868 

450  00 

Portsmouth 

Oct      19  1869 

6  700  00 

Peoria        .     ...           

do        

Aug.    26,  1868 

6  900  00 

New  York 

May      6  1869 

7  700  00 

do         

July      7  1869 

12  000  00 

Philadelphia 

Oct      28  1868 

21  687  50 

Norfolk                   ..     .  . 

Sept.    10  1868 

10  025  00 

Shamokiu  

Washington  

Oct.     21,  1869 

25  000  00 

Philadelphia 

Sept.      1   1868 

19  700  00 

Tacony             

Portsmouth  

Aug.    26,  1868 

20  OCO  00 

New  York 

Au"-.    29  1868 

24  500  00 

Wlnnepec          •          

Norfolk  

June    17,  1869 

50  000  00 

'W'inooski 

Portsmouth 

Au"-.    26  1868 

19  ICO  00 

YUCCA 

.  do        

Aug.    26,  1868 

9  500  00 

Uuadiila 

Nov.      9  1869 

24  215  16 

Total 

853  934  90 

*  Sold  to  War  Department,  not  paid  for. 


RECAPITULATION. 


Total  vessels  sold  from  April,  1865,  to  May,  1868 

Total  vessels  sold  from  May  I,  1864,  to  April,  1865,  and  from  April  1,  1865,  to  date 


Total  vessels  sold  by  Navy  Department,  April  1, 1861,  to  date. 


420 
51 


471 


Amount  received  for  vessels  sold  from  April,  1865,  to  May,  1868 $9,  710,  575  55 

Amount  received  from  vessels  sold  from  April  1,  1861,  to  April  1,  1865 41,  400  00 

Amount  received  from  May  1,  186«,  to  date 812,534  90 

Total 10,764,51045 


NOTE,— For  the  number  and -names  of  vessels  sold  from  close  of  war  to  May  1, 1368,  see  Ex.  Doc.  No. 
^282,  2d  session  40th  Congress. 


NAVIGATION   INTERESTS. 

GENERAL  RECAPITULATION. 


255 


1 

1 

Guns. 

3 

• 

fc 

H 

Vessels  in  service  April  1  1861      

Bfi 

IIP  460 

2  409 

Vessels  built  since  April  1  1861 

179 

166  000 

1  110 

Whole  number  purchased  since  April  1  1861  or  transferred  to  navy  

497 

171  837 

Whole  number  sold  

471 

Total  price  paid §10,764,510  45 


No.  V. — Number  and  tonnage  of  sailing  and  steam  vessels  built  and  first  registered  in  the 

United  Kingdom. 


Calendar  years. 

SAILING  VESSELS. 

STEAM  VESSELS. 

TOTAL. 

Vessels. 

Tons. 

Vessels. 

Tons. 

Vessels. 

Tons. 

1850                                      

621 

594 
608 
645 
628 
865 
921 
1,050 
847 
789 
818 
774 
827 
881 
867 
922 
969 
915 
787 

119,  111 
126,  914 
136,  749 
154,  956 
132,  687 
242,  182 
187,  005 
197,  554 
154,  930 
147,  967 
158,  172 
129,  970 
164,  061 
253,  036 
272,  499 
235,  555 
207,  678 
185,  771 
237,  687 

68 
78 
104 
153 
174 
233 
229 
228 
153 
150 
198 
201 
221 
279 
374 
382 
354 
295 
232 

14,  584 
22,723 
30,  742 
48,  215 
64,255 
81,018 
57,  573 
52,  918 
53,  150 
38,  003 
53,  796 
70,  869 
77,  338 
107,  951 
159,  374 
179,  643 
133,511 
97,  219 
78,  510 

689 
672 
712 

798 
802 
1,098 
1,150 
1,  278 
1,000 
939 
1,016 
975 
,048 
,160 
,241 
,304 
,  323 
1,210 
,019 

133,  605 
149,  637 
1G7,  491 
203,  171 
196,  942 
323,  200 
244,  578 
250,  472 
208,  000 
185,  970 
211,968 
200,  839 
241,  399 
360,  937 
431,  873 
415,  204 
341,  189 
282,  990 
316,  197 

1851 

1852                                                 ...          

1853                                    

1854                                                                       .   - 

1855                                             

1856 

1857                                                     

1858                               

1859                                                                     

18GO                                            

1861 

1862                                                         

1863 

1864                                                              

1865                                        

1866 

1867                                             

1868 

o>  YI. — Table  showing  the  tonnage  of  United  States  and  British  registered  vessels,  employed 
in  the  foreign  trade  of  each  country,  during  the  years,  respectively,  1830,  4840, 1850,  and  from 
1860  to  1868,  both  inclusive. 


UNITED  STATES. 

GREAT  BRITAIN.* 

Year. 

In  the  foreign  trade. 

Partly  in  home  and  partly 
in  foreign  trade. 

Sail 

Total 

Sail. 

Steam. 

Total. 

Sail. 

Steam. 

Total. 

1  419 

576  475 

895  610 

4  155 

899  765 

1850.. 

1,540  769 

44,  429 

1,  585,  198 

2,  143,  234 

45,  186 

2,  188,  420 

222,  341 

5,298 

227,  639 

I860.. 
1861.. 
1862.. 
1863 

2,  448,  941 
2,  540,  020 
2,  177,  253 
1,  892,  899 

97,296 
102,  608 
113,  998 
133,  215 

2,  546,  237 
2,  642,  628 
2,291,251 
2,026,114 

2,  804,  610 
2,  866,  218 
2,  993,  696 
3,  24(i,  TrJG 

277,  437 
313,  465 
328,  310 
371,  201 

3,  082,  047 
3,  179,  683 
3,  322,  006 
3,  617,  727 

226,  5:>6 
219,  522 
246,  479 
284,  413 

29,  803 
24,  924 
29,  463 
33,  547 

256,  .r>9 
244,  446 
275,  942 
317,  960 

1864.. 
1865.. 
1866.. 

1867 

1,475,376 
1,  504,  575 
1,  294,  637 
1,  369,  917 

106,  519 
98,  008 
198,  289 
199,  115 

1,  581,  895 
1,  602,  583 
1,  492,  926 
1,  568,  032 

3,  532,  242 
3,  629,  023 
3,  612,  973 
3,  641,  662 

456,241 
523,  698 
553,  425 
608,  232 

3,  988,  483 
4,  152,  721 
4,  166,  398 
4,  249,  894 

268,  125 

282,  295 
278,  167 
199,  846 

36,  944 
43,  225 
47,  194 
50,201 

305,  069 
3-25,  5-20 
325,  361 
250,  047 

1868.. 

1,  343,  793 

221,  939 

1,  565,  732 

3,  646,  150 

619,  199 

4,  265,  349 

240,  921 

52,  150 

293,  071 

*  Thia  table  includes  Channel  Island  vessels,  but  not  those  of  the  British  plantations.  The  home  trade 
signifies  on  the  coasts  of  the  United  Kingdom,  or  to  ports  between  the  limits  of  the  river  Elbe  and 
Brest.  The  foreign  trade  signifies  to  ports  beyond  such  limits. 


256  NAVIGATION   INTERESTS. 

No.  VII. — Total  number  and  tonnage  of  vessels  registered  as  belonging  to  the  United  Kingdom, 
including  Jersey,  Guernsey,  and  the  Isle  of  Man,  at  the  end  of  each  year. 


Calendar  years. 

SAILING  VESSELS. 

STEAM  VESSELS. 

TOTAL. 

Vessels. 

Tons. 

I 
Vessels.     Tons. 

Vessels. 

Tons. 

1850                        *                                   

24,  707 
24,  816 
24,  814 
25,  224 
25,335 
24,  274 

3,  306,  659 
3,  475,  657 
3,  540,  968 
3,  780,  092 
3,  042,  513 
3,  068,  600 

1,  187  |     168,  474 
1,227       186,637 
1,  272  '    200,  310 
1,385  ;     250,112 
1,524       306,237 
1,674       380,635 
1,607       386,462 
1,  824       417,  466 
1,926  ;     452,463 
1,018  1     436,836 
2,  000       454,  327 
2,133       506,308 
2,  228       537,  801 
2,  208       596,  856 
2,  400       607,  281 
2,  718       823,  533 
2,  831       875,  685 
2,031       901,062 
2,  944       9C2,  297 

25,  084 
26,  043 
26,  086 
26,  GOO 
26,  850 
25,  043 
26,  177 
27,  007 
27,  541 
27,  702 
27,  663 
23,  038 
28,  440 
28,  637 
28,  632 
28,  787 
28,  071 
28,  773 
28,  444 

3,  565,  133 
3,  662,  344 
3,  750,  273 
4,  030,  204 
4,  248,  750 
4,  340,  334 
4,  366,  05G 
4,  558,  740 
4,  G57,  733 
4,  663,  101 
4,  658,  6S7 
4,  806,  826 
4,  034,  400 
5,  328,  073 
5,  627,  500 
5,  760,  300 
5,  770,  337 
5,  753.  073 
5,  780,  5.'JO 

1851       .                       

1852 

1853  

1854 

1855  

1856  

24,  480 
25,273 

3,  080,  494 
4,141,274 

1857  

1858  

1859 

25,  615 
25,  784 
25,  663 
25,  005 
26,  212 
26,  3.10 
26,  142 

4,  205,  270 
,  226,  355 
,  204,  360 
,  300,  518 
,  306,  500 
,731,217 
,  930,  219 

I860                                  

ISfil 

1862                                

1863 

18G4  

1865     

26,  069 
26,  140 
25,  R42 
25^500 

,  936,  776 
,  003,  652 
,852,911 

,  878,  233 

1866 

1867                                 .              

1868 

No.  VIII. — Table  showing  the  tonnage,  respectively,  of  American,  British,  and  French  vessels 
which  entered  and  cleared  at  tlie  ports  of  countries  to  which  such  vessels  belonged  in  trade  with 
other  countries. 


Calendar  year. 

Entered  inward. 

Cleared  out-ward. 

American  vessels 
entering  at  Amer 
ican  from  foreign 
ports. 

British  vessels  en 
tering  at  ports  of 
Great  Brit'n  from 
foreign  ports. 

French  vessels  en 
tering  at  ports  of 
Franco  from  for 
eign  ports. 

American  vessels 
clearing  from 
American  for  for 
eigu  ports. 

British  ves  sols 
clcar'g  from  ports 
of  Great  Britain 
for  foreign  ports. 

Fi-eneh  ves'ls  clear 
ing  from  nort.s  of 
Franco  lor  for 
eign  ports. 

1853   

'  4,  004,  013 
3,  752,  115 
3,  861,  391 
4^335,  484 
4,  721,  370 
4,  395,  642 
5,  265,  643 
5,  921,  285 
5,  023,  917 
5,  117,  685 
4,  614,  698 
3,  066,  434 
2,  943,  GG1 
3,  372,  060 
3,  455,  052 
3,  550,  550 

3,  363,  121 
3,  313,  540 
3,  633,  153 
4,  433,  702 
4,  772,  760 
4,  506,  100 
4,  603,  266 
4,  778,  010 
5,  410,  450 
5,  526,  295 
5,  866,  184 
6,  4G2,  606 
7,  022,  948 
7,  980,  264 
8,  706,  255 
8,  721,  022 

854,  029 
921,  ftC 
1,  006,  419 
1,191,424 
1,  356,  687 
1,  286,  870 
1,  328,  322 
1,  345,  396 
1,  434,  778 
1,  589,  763 
1,  610,  347 
1,  G49,  518 
1,  639,  994 
1,  633,  296 
1,  709,  703 
1,  804,  021 

3,  766,  789 
3,  Oil,  302 
4,  068,  979 
4,  538,  364 
4,  580,  651 
4,  400,  033 
5,  297,  367 
6,  165,  924 
4,  889,  313 
4,  961,  818 
4,  447,  261 
3,  090,  048 
3,  025,  134 
3,  383,  176 
3,  410,  502 
3,  717,  956 

3,  457,  058 
3,  362,  083 
3,  882,  017 
4,  521,  818 
4,  630,  230 
4,  367,  855 
4,  631,  G70 
4,  801,  042 
5,  182,  862 
5,  546,  183 
5,  722,  643 
6,  460,  578 
7,  116,  057 
7,  895,  770 
8,  388,  346 
8,  603,  G91 

911,164 

1,011,611 
1,  042,  279 
1,215,154 
1,  375,  082 
1,  274,  219 
1,401,  164 
1,  437,  893 
1,  468,  461 
1,  550,  886 
1,  656,  777 
1,  660,  640 
1,  705,  334 
1,  GOO,  540 
1,  392,  004 
1,  834,  856 

1854  

1855       .  -  - 

1856  

],-<57 

1853  

1859  

1HGO 

IdOl  

1862 

1«63  

1864 

1363  

1866 

1867  . 

Id63  

NAVIGATION    INTERESTS. 


257 


No.  IX. — Table  showing  the  licensed  and  enrolled  tonnage  of  the  United  States  engaged  in 
the  coastwise  trade,  and  the  tonnage  of  the  British  registered  vessels  engaged  in  the  home 
trade,  during  the  years,  respectively,  from  1850  to  1868,  both  inclusive. 


Year 

fc 

UNITED  STATES. 

*  GREAT  BRITAIN. 

Year. 

Licensed 
andt-nroll- 

ed  sail. 

Licensed 
and 
enrolled 

strain. 

Total 
licensed 
and 

enrolled* 

In  the  home  trade. 

Partly  in  the  home  and  partly 
in  the  foreign  trade. 

Register 

Register- 

Total  re 

Register 

Register 

Total  re 

ed  Hail. 

ed  strum. 

gistered. 

ed  sail. 

ed  steam. 

gistered. 

1850.. 

,  468,  738 

481,  005 

1,  949,  743 

666,  957 

54,  196 

721,  153 

222,341 

5,298 

227,  639 

1850 

1851.. 

,524,915 

521,217 

2,  046,  132 

685,  641 

78,  820 

764,461 

242,  656 

4,  926 

247,  582 

1851 

m52.. 

,  675,  456 

563,  536 

2,  238,  992 

701,803 

66,  606 

768,  409 

147,  867 

15,  244 

163,  111 

1852 

1853.. 

,  789,  238 

514,  098 

2,  303,  336 

689,  342 

85,471 

774,  813 

156,  800 

7,250 

164,050 

1853 

1854.. 

,887,512 

581,571 

2,  469,  083 

694,  712 

54,002 

748,  714 

202.  124 

19,135 

221,259 

1854 

1855.. 

2,  021,  625 

655,  24  0 

2,  676,  865 

691,  128 

57,415 

748,  543 

210,114 

12,562 

222,  676 

1855 

1856.. 

1,796,888 

583,  362 

2,  380,  250 

719,860 

67,616 

787,  476 

162,  488 

16,102 

178,  590 

1856 

1857.. 

1,  857.  964 

618,911 

2,  476,  875 

767,  925 

92,481 

860,  406 

162,112 

20,  859 

182,  971 

1857 

1858.. 

2,  550,  067 

651,363 

3,  201,  430 

788,  113 

90,  739 

878,  852 

13d,  699 

20,604 

159,303 

1858 

1859.. 

1,961,631 

676,  005 

2,  637,  636 

777,  422 

90,  867 

868,  289 

132,768 

21,  123 

153,  89) 

1859 

I860.. 

2,  036,  990 

770.641 

2,  807,  631 

821,079 

92,  254 

913,333 

226,  556 

29,  803 

256,  359 

1860 

1861.. 

2,  122,  589 

774,  596 

2,  897,  185 

832,  771 

102,  795 

935,  566 

219,  522 

24,  924 

244,  446 

1861 

1862.. 

2,  224,  449 

596,  465 

2,820,914 

771,  326 

104,  020 

875,  346 

246,  479 

29,  463 

275,  942 

1862 

1863.. 

2,6611,212 

439,  755 

3,  099,  967 

752,  589 

107,  003 

859,  592 

284,413 

33,  547 

317,960 

1863 

1864.. 

2,  5*30,  690 

853,  816 

3,  404,  506 

789,  108 

125,  808 

914,916 

268,  125 

36,  944 

305,  069 

1864 

1865.. 

2,  505,  067 

969,  131 

3,  494,  198 

795,  434 

134,776 

930,210 

282,  295 

43,  225 

325,  520 

1865 

1866.. 

1,  932,  829 

885,  023 

2,817,852 

813,909 

147,  191 

961,  103 

278,  167 

47,  194 

325,361 

1866 

1867.. 

I,  742,  689 

993,  765 

2,  736,  454 

839,  523 

154,  244 

993,  767 

199,  846 

50,201 

250,  047 

1867 

1868.. 

1,808,550 

977,  476 

2,  786,  026 

804,  749 

153,  265 

958,  (X14 

240,  921 

52,150 

293,  071 

1868 

*  NOTE.— This  table  includes  Channel  Islands  vessels,  but  not  those  of  the  British  plantations.  The  home 
trade  signifies  on  the  coasts  of  the  United  Kingdom,  or  to  ports  between  the  limits  of  the  River  Elbe  and 
Brest.  The  foreign  trade  signifies  to  ports  beyond  such  limits. 


No.  X. — A  comparative  new  of  the  tonnage  of  the  United  States  from  June  30,  1850,  to  June 
30,  1869,  showing,  separately,  the  tonnage  of  sailing  and  steam  vessels,  and  the  yearly 
increase  or  decrease  of  each  class. 


Fiscal  years. 

Total  tonnage. 

Tonnage     em- 
ploy'd  in  steam 
navigation. 

Yearly  increase 
and     decrease 
of  steam  ton 
nage. 

Tonnage  of  sail 
ing  vessels,  in 
cluding  barges 
and  canal  -boats. 

Yearly  increase 
and  decrease  ot 
saili'g  tonnage. 

1851  

Tonsand95t/is. 
3  77°  439  43 

Tons  andVStfis. 
583  607  05 

Tons  and  95tks. 
*57  660  15 

Tone  and  Qbths. 
3  188  83°  38 

Tons  andSSths. 
*179  325  05 

185° 

4  138  440  47 

634  °40  67 

*50*633  6° 

3  504  199  80 

*315  367  4° 

1853  

4  407  Oil  43 

514  097  87 

tl20  142  80 

3  89<>  913  56 

*388  713  76 

1854 

4*  80°'  90°  63 

676  607  12 

*160>5!)9  25 

4  1°6  295  51 

*233  381  95 

1855  

5  212  001  10 

770  285  12 

*93  67^  00 

4  441  715  98 

*315  420  47 

1856 

4  871  65°  46 

673  077  54 

|97  OQ7  sg 

4  198  574  9° 

|243  141  06 

1857  
1858  

4,  940,  84.5.  04 
5  049  808.  35 

705,  784.  04 
729  398.  41 

*32,  706.  50 
*23  614  37 

4,  235,  059.  00 
4  320  409  94 

*36,  484.  08 
*85  350.  94 

1859 

5  145  037  39 

768  436  83 

*39  038  4° 

4  376  600  56 

*56  190  62 

I860  

5  353*  868.  42 

867  937.49 

*99  500.66 

4  485  930  93 

*109  330.37 

1861 

5  539  812  79 

877  203  51 

*9  266  02 

66°  609  28 

*176  678  35 

1862  

5  112  164.48 

710  462.33 

t!66  741   18 

401  702  15 

t26H  907.  13. 

1863 

5  155  055  47 

575  510  17 

f!34  952  16 

579  545  30 

*177  843,  15 

1864  

4  986  399.79 

978  177.74 

*402  667  57 

008  222  05 

t571,  323*  25 

1865:  

5,  096,  781.  80 

1,067,  139.91 

*88,  962.  17 

,029,641.89 

*2l,  419,  84 

1866t  
1867:  

4,  310,  775.  48 
3,957,514.62 

1,083,511.99 
1,  122,979.61 

*  16,  372.  08 
*39,  467.  62 

3,  227,  263.  49 
2,  834,  535  01 

1802,  373.-40 
t392,  723.  48 

1868:  

4,318,309.50 

1,  199  414.  89 

*76  435.28 

3  118  894.61 

*284,  351*.  60 

1869 

4  144  640  76 

1  103  568  38 

|95  851  89 

3  041  072  38 

t77  822.61 

*  Increase.  t  Decrease. 

1  For  1865,  1866,  1867,  and  1868  the  tonnage  is  partly  "old"  and  partly  "new"  admeasurement. 


17  N  I 


258 


NAVIGATION   INTERESTS. 


No.  XI. — A  statement  exhibiting  the  amount  of  registered  tonnage  oftlie  United  States,  steam 
and  sail,  employed  in  navigation  annually,  from  1850  to  1869,  inclusive,  and  the  annual 
increase  or  decrease  of  each  class. 


Year  ending  June  30  — 

Total  tonnage. 

Registered  sail 
tonnage. 

Annual  increase 
or  decrease  of 
sail  tonnage. 

Registered 
steam  tonnage. 

Annual  increase 
or  decrease  of 
steam  tonnage. 

1850  

1  585  198 

1  540  769 

*122  697 

44  429 

*23  J59 

1851 

1  726  307 

1  663  917 

*123  148 

62  390 

*17  961 

1852 

1  899  478 

1  819  774 

KJ55  gv7 

79  704 

*17  314 

1853 

2  103  674 

2  013  154 

*193  380 

90  520 

*10  816 

1854  

2  333*819 

2  238  783 

*225  629 

95  036 

*4  516 

1855 

2  555  136 

2  440  091 

*201  308 

115  045 

*20  009 

1856 

2  491  402 

2  401  687 

t  38  404 

89  715 

t  °5  330 

1857 

2  463  967 

o  377  094 

t<>4  593 

86  873 

t2  842 

1858  

25/7  769 

2  499  742 

*122  648 

78,  027 

18  846 

1859 

2  507  402 

2  414  654 

t  85  088 

92  748 

*14  721 

I860  

2  546  237 

2  448  941 

*34  287 

97,  296 

*4  548 

1861 

2  642  6°8 

2  540  0°0 

*9l  079 

102  608 

*5  312 

1862  

2  291  251 

2  177  253 

t362  767 

113,  998 

*11  390 

1863 

2  026  114 

1  89°  899 

t284  354 

133  215 

*19  217 

1864  

1  581*895 

475  376 

t417  523 

106,  519 

1  26,  696 

1865 

1  602  583 

504  575 

*29  199 

98  008 

t8  511 

1866  

1  492  926 

294  637 

1209  938 

198,  289 

*100  281 

1867 

1  568  032 

369  917 

*75  280 

198  115 

1  174 

1868  

1  565  732 

,343  793 

t26  124 

221,  939 

*23,  824 

1869 

1  566  421 

353  169 

*42  825 

213  252 

t8  687 

Increase. 


t  Decrease. 


No.  XII.— Table  showing  the  tonnage  of  the  United  States,  June  30,  1869. 


TONNAGE. 

Sailing  ves 
sels. 

Steamers. 

Total. 

Registered  vessels 

1,  353,  169 

213,  252 

1,566  421 

Licensed  and  enrolled,  vessels 

1  687  903 

890  316 

2  578  219 

Total 

3  041  072 

1  103  568 

4  144  640 

No.  XIII. — Statement  showing  the  number  and  class  of  vessels  built,  and  the  tonnage  thereof,  in 
the  several  States  and  Territories  of  the  United  States  from  1850  to  1869,  inclusive. 


CLASS  OF 

VESSELS. 

Fiscal  years. 

Ships 
and 
barks. 

Brigs. 

Schooners. 

Sloops  and 
canal-boats. 

Steamers. 

of  vessels 
built. 

Total  ton  - 
nage. 

1850                                             

247 

117 

547 

290 

259 

1  460 

272  218.54 

1851 

211 

65 

522 

326 

233 

1  357 

298  203  60 

1852 

255 

79 

584 

267 

259 

1  444 

351  493.41 

1853  

269 

95 

681 

394 

271 

1,710 

425,  571.  49 

1854 

334 

112 

661 

386 

281 

1  774 

535  616.  01 

1855  

381 

126 

605 

669 

253 

2,034 

583,  450.  04 

1856 

306 

103 

•594 

479 

221 

1,703 

469,  393.  73 

1857  

251 

58 

504 

258 

263 

1,334 

378,  804.  70 

1658 

222 

46 

431 

400 

226 

1,325 

242,  286.  69 

1859  

89 

28 

297 

284 

172 

870 

156,  601.  33 

1860 

110 

36 

372 

289 

264  . 

1,071 

212,  892.  45 

1861  

no 

38 

360 

371 

264 

1,143 

233,  194.  35 

1862 

62 

17 

207 

397 

183 

866 

175,  075.  84 

±863  

97 

34 

212 

1,  113 

367 

1,823 

310,  884.  34 

1864 

112 

45 

322 

1  389 

498 

2,366 

514,  740.  64 

1865... 

109 

46 

369 

853 

411 

1,788 

383,  805.  60 

1866* 

96 

61 

457 

926 

348 

1,888 

336,  146.  56 

1867*  . 

95 

70 

517 

657 

180 

1,519 

303,  528.  66 

1868* 

80 

48 

590 

848 

236 

1,802 

285,  304.  73 

1869*.. 

91 

36 

506 

816 

277 

1,  726 

275,  230.  05 

New  admeasurement. 


NAVIGATION    INTERESTS. 


259 


No.  XIV. — Total  summary  of  tlic  tonnage  of  the  United  States,  June  30,  1869,  as  reported  to 

the  Bureau  of  Statistics. 


Class. 

Vessels. 

Tons. 

Ships                                                                                       

537 

Barks                        

818 

Bri(Ts                                                                                -       ...              .   . 

607 

10  870 

Sloops 

3  913 

Tot  'il  siiliuf  vessels                                              .      ..               .      ... 

16  745 

o  074  gn  09 

3,361 

1  046  015  98 

6  287 

62'5  4'H  0° 

Total  number  of  vessels  permanently  documented 

26  393 

3  744  'ji<)  00 

Total  number  of  vessels  temporarily  documented  

1  033 

401  046  99 

Total                                    

27  426 

4  145  366  08 

No.  XV. — A  table  showing  the  amount  of  American  and  foreign  tonnage  entered  the  ports  of  the 
United  States  from  foreign  countries  in  1830,  1840,  1850,  and  from  1860  to  1869,  both  inclusive. 


Fiscal  years. 

American  ton 
nage. 

Foreign    ton 
nage. 

American  in  ex 
cess  of  foreign 
tonnage. 

For'ii  in  excess 
of  American 
tonnage. 

1830   

967,227 

131,  900 

835,  327 

1840 

1  576  946 

712  363 

864  583 

1850                       

2  573  016 

1,  775,  623 

797,  393 

1860 

5  921  285 

2  253  911 

3  567  374 

1861                                                 

5  023  U17 

2,  217,  554 

2  806  363 

1862 

5  117  685 

2  245  278 

2  872  407 

1863                                         

4  614  698 

2  640  378 

1  974  320 

1864 

3  066  434 

3  471  219 

404  785 

1865                                               .       .     . 

2,943  661 

3  216  967 

273  306 

1866                 

3,  372,  060 

4,  410,  424 

1,038  364 

1867 

3,  455  052 

4  318  673 

863  621 

1868                      

3,  550,  550 

4,  495,  465 

944  915 

1869 

3  402  668 

5  347  694 

1  945  026 

No.  XVI. — Table  showing  the  estimated  value  of  American  foreign  carrying  trade  during  the  ten 
years  from  1860  to  1869,  both  inclusive. 


© 

•sia&cs 

Fiscal  years. 

Amount  of 
registered  ton- 
nageJune30. 

timatcdspc 
alue,  per  to 

Aggregate 
specie  value  of 
tonnage. 

llfll 

%> 

|P££s 

1850 

1  585  198 

$38 

$60  237  524 

$20  079  175 

2  546  237 

41 

104  395  717 

34  798  r>72 

1861 

2  64°  628 

41 

108  347  748 

36  115  916 

2  291  251 

45 

103  106  295 

34  368  765 

1863                                  

2,  026,  114 

45 

91  175  130 

30  391  710 

1864 

1  581  895 

45 

71  185  275 

23  7°8  425 

1,  602,  583 

45 

72  116  235 

24  0'58  745 

1866 

1  492  926 

45 

67  181  670 

2°  393  890 

1867                                                 

1  568,032 

45 

70  561  440 

23  5°0  480 

1868                                

1,  565,  732 

45 

70  457,940 

23  485  980 

1869 

1  566  421 

45 

70  488  945 

23  496  315 

260 


NAVIGATION    INTERESTS. 


No.  XVII. — Table  showing  the  estimated  value  of  American  coastwise  and  inland  carding 
trade  during  the  ten  years  from  1860  to  1869,  both  inclusive. 


Fiscal  years. 

Amount  of 
licensed  and 
enrolled  ton 
nage  on  Juno 
30. 

Estimated  specie 
value,  per  ton. 

Aggregate 
specie  value  of 
tonnage. 

Estimated  specie 
value  of  gross 
yearly  earning, 
being  33J  per 
cent,  of  value. 

1850                    

1  949  743 

$38 

$74  090  234 

$24  696  745 

1860 

2  807  631 

41 

115  112  871 

38  370  957 

1861 

2  897  185 

41 

118  784  585 

39  5"D4  861 

1862             

2  820  914 

45 

126  941  130 

42  313  710 

1863                    .  . 

3  099  967 

45 

139  498  515 

46  490  505 

1864         

3  4D4  506 

45 

153  202  770 

51  067  500 

1865 

3  494  1B8 

45 

157  238  910 

52  412  970 

1866              

2  817  852 

45 

126  803  340 

42  267  780 

1867 

2  736  454 

45 

123  140  430 

41  046  810 

1868                   

2  786  026 

45 

125  371  170 

41  790  390 

1869.  ..     

2,  578,  219 

45 

116  019  855 

38  673  2S5 

No.  XVIII. — Table  showing  the  total  foreign  commerce  of  the  United  States  during  each  year 
from  1850  to  1869,  inclusive. 


Fiscal  years. 

Exports  and  im 
ports  in  Ameri 
can  vessels. 

Exports  and  im 
ports1  in  foreign 
vessels. 

Total. 

1850 

$239  272  084 

$90  764  954 

$330  037  038 

1851           

316  107  232 

lis'  505*  711 

434  612  943 

1852 

294  735  404 

1°3  219  817 

417  955  2°1 

1853                 

346  717  127 

152  237  677 

498  954  804 

1854   

406  698  539 

170  591,  875 

577  290,  414 

1855 

405  485  462 

131  139  90  -1 

536  625  366 

1856        

482  268  274 

159  336,570 

641  604  850 

1857 

510  331  027 

213  519  706 

723  850  823 

1858           

447  191  304 

160  066  267 

607  257  571 

1859 

465  741  381 

229  816  211 

695  557  592 

1860 

507  247  757 

255  040  793 

762  288  550 

1861  

381,  516,  788 

203,  478,  278 

584,  995,  066 

1862 

217  695  418 

218  015  296 

435  710  714 

1863  

241,  872,  471 

343,  056,  031 

584,  928,  502 

1864 

184  061  486 

485  793  543 

669  855  034 

1865               

167,  402,  872 

437,  010,  124 

604,412,996 

1866 

325  711  861 

685  226  691 

1  010  938  552 

1807                

296  998  387 

580,  022,  004 

877  020  391 

1868  

297,  981,  573 

550,  546,  074 

848,  527,  647 

1869 

289  950  272 

586,  492,  012 

876,  442  284 

Total 

6  824  986  719 

5,893  879,639 

12  718,  866  358 

No.  XIX. — Total  exports  of  domestic  and  foreign  merchandise  combined. 


Fiscal  years. 

American  ves 
sels. 

Foreign  ves 
sels. 

Total. 

1850                     

$99,  615,  041 

$52,  283,  679 

$151,  898,  720 

1851 

152  456  689 

65  931  322 

218  388  Oil 

1852                         

139,  476,  937 

70,  181,  429 

209,  658,  366 

1853 

155  028  802 

75  947  355 

230  976  157 

1854                           

191,  322,  266 

84,  474,  054 

275,  T.'6,  320 

1855 

203  250  562 

71  906  284 

275  156  846 

1856 

232,  295,  162 

94,  669,  146 

326,  964,  3'J8 

1857            

251,  214,  857 

111,  745,  825 

362,  960,  682 

1858 

243,  491  288 

81,  153,  133 

324,  644,  421 

1859              

249,  617,  953 

107,  171,  509 

356,  789,  462 

1860               »-* 

279,  082,  902 

121,  039,  394 

400,  122,  296 

1861         .          

179,  972,  733 

69,  372,  180 

249,  344,  913 

1862 

125,  421,  318 

104,  517,  667 

229,  938,  985 

1863            .        

132,  127,  890 

199,  880,  691 

332,  003,  581 

1864 

102,  849,  409 

237,  442,  730 

340,  292,  139 

1865                     

90,  017,  756 

262,  839,  588 

352,  857,  344 

1866 

213  671,  466 

351,754,928 

565,  426,  394 

1667                        

179,  788,  851 

279,  399,  969 

459,  188,  820 

1868 

175,  016,  348 

301,  886,  491 

476,  902,  839 

18G9                        

153,  148,  248 

285,  979,  781 

439,  128,  029 

Total               

3,  548,  866,  478 

3,029,577,155 

6,  573,  443,  633 

NAVIGATION    INTERESTS. 


261 


No.  XX. — Table  showing  tlic  amount  of  foreign  merchandise  imported  into  the  United  States 
in  American  and  foreign  vessels,  respectively,  during  the  fiscal  years  from  1850  to  1869, 
both  inclusive.  (Expressed  in  specie  value  at  foreign  ports  of  exportation.) 


IMPORTS. 

In  American  vessels. 

In  foreign  vessels. 

Total  in  American 
and  foreign  vessels. 

1850 

$139  657  043 

$38  481  275 

$178  138  318 

1851  

163  650  543 

52,574  389 

216  224,  932 

155  °58  467 

53  038  388 

*21°  945  442 

1853  

191  688  325 

76  290  322 

267,  978,  647 

1854 

215  376  273 

86  117  821 

*304  562  381 

1855  

202  234  900 

59  233  620 

261,468,520 

1856 

249  972  512 

64  667  430 

314  639  942 

1857  

5259-116  170 

101  773  971 

360,  890,  141 

1858 

203  700  016 

78  913  134 

282  613  150 

1859  

216  123  428 

122  644  702 

338,  768,  130 

1860 

228  164  855 

134  001  399 

362  166  254 

1861  ...  .       

201  544  055 

134  106  098 

335,  650,  153 

186° 

92  274  100 

113  497  629 

205  771  729 

186;)   

109*744  580 

143,  175  340 

252,919,920 

1864 

81  212  077 

248  350  818 

329  56-2  895 

1865   ...     

74  385  116 

174  170  536 

248,  555,  652 

1866 

112  040  395 

333  471  763 

445  512  158 

1867     

117  209  536 

300  622  035 

417,831,571 

1868 

122  965  225 

248  659  583 

371  624  808 

1869    

136  802  024 

300  512  231 

437,  314,  255 

Total  

3  273  119  640 

2  864  302  484 

6,  145,  138,  998 

*In  the  year  1852  $4,648,587,  and  in  1854  $3,068,287,  were  imported  into  San  Francisco;  class  of  vessels  in 
which  brought  cannot  be  stated. 


262 


NAVIGATION   INTERESTS. 


No.  XXI. — Statement  exhibiting  the  arrival  and  departure,  at  certain  specified  2>orts,  of 
American  and  foreign  vessels,  in  certain  portions  of  the  foreign  trade  of  the  United  States, 
1856  to  I860,  and  1865  to  1869,  loth  inclusive. 


No.  I.— DISTRICT  OF  BOSTON. 


District. 
Boston  

Total.... 
Boston  

Total.... 

From  1856  to  1860  inclusive. 

From  1865  to  1869  inclusive. 

Countries. 

American. 

Foreign. 

Total. 

American. 

Foreign. 

Total. 

1 

to 

1 
I 

Number. 

Tonnage. 

Number. 

1 
H 

Number. 

<o 
H 

| 

1 

to 

05 

37 

403 

67 
20 

21,992 
319,  497 
311 
55,  924 
15,  399 

1 

—  9 

472 
8,624 

38 
412 
1 

68 

22,464 
328,  121 
311 
56,  816 
15,  524 

18 
123 

12,  218 
113,  858 

12 
63 
3 

7 
12 
1 

6,207 
50,  871 
1,  538 
6,008 
5,601 
757 

30 
186 
3 
32 
17 
1 

18,  425 
164,  729 
1,538 
29,  384 

8'S? 

Dutch  E.  Indies. 
British  E.  Indies. 
Australia. 
Philippine  Islands. 
i  China. 
Japan. 

France  on  Med. 
Spain  on  Med. 
Italy  and  Sicily. 
Austria. 
Turkey  &  Greece. 

1 

892 
125 

25 
5 

23,  376 
2,709 

528 

413,  123 

12 

10,  113 

540 

423,  236 

171 

152,  161 

98 

70,  982 

269 

223,  143 

49 
45 
203 
5 
102 

16,  180 
15,  943 
81,  246 
2,411 
33,  310 

23 
27 
131 

"~6 

9,599 
6,724 
26,507 

~i,"645 

72 
72 
334 

108 

25,  779 
22,667 
107,  753 
2,411 
34,  955J 

11 
33 

184 

5,010 
10,  097 
79,  124 

18 
23 
76 

6,949 
3,851 
28,  451 

29 
56 
260 

11,  959 
13,  948 
107,  575 

33 

11,  817 

25 

7,971 

58 

19,  788 

404 

149,  090 

187 

44,  4,75 

591 

193,  565 

261 

106,  048 

142 

47,222 

403 

153,  270 

Boston  

23 

11,  518 

5 

1,912 

28 

13,  430 

22 

16,  184 

3 

2,030 

25 

18,  214 

Dutch  E.  Indies. 

206 

133,  606 

i 

475 

207 

134,  081 

94 

86,  202 

16 

14,  763 

110 

100,  965 

British  E.  Indies. 

93 

63,  618 

1 

1,545 

94 

65,  163 

61 

39,  437 

39 

20,  164 

100 

59,  601 

Australia. 

q 

7,083 

q 

7  083 

38 

22,210 

38 

22,210 

91 

16,  603 

5 

3,976 

<>6 

20  579 

China. 

1  731 

3 

1  731 

Total.... 

369 

238,  035 

7 

3,932 

376 

241,  967 

201 

160,  157 

63 

40,933 

264 

201,  090 

Boston  

38 

10,  661 

8 

2,016 

46 

12,  677 

_ 

1,527 

5 

1,173 

10 

2,700 

France  on  Med. 

24 

5,865 

3 

871 

27 

6,736 

30 

9,897 

7 

1,865 

37 

11,  762 

Spain  on  Med. 

30 

8,680 

11 

3,281 

41 

11,  961 

10 

3,  105 

3 

919 

13 

4,  024 

Italy  and  Sicily. 

36 

11,463 

6 

2,049 

42 

13,  512 

1 

384 

1 

211 

2 

595 

Austria. 

116 

41,  912 

4 

2,266 

120 

44,  178 

26 

8,009 

13 

3,539 

'39 

11,  548 

Turkey  <fc  Greece. 

Total  .... 

244 

78,  581 

32 

10,4831  276 

89,  064 

72 

22,922 

29 

7,707|  101 

30,  629 

NAVIGATION   INTERESTS. 


263 


No.  XXI. — Arrival  and  departure  of  American  and  foreign  vessels,  <fc. — Continued. 
No.  H.— DISTRICT  OF  NEW  YORK. 


Districts. 

ENTERED. 

* 
Countries. 

From  1856  to  1860  inclusive. 

From  1865  to  1869  inclusive. 

American. 

Foreign. 

Total 

American. 

Foreign. 

Total 

Number. 

Tonnage. 

Number. 

Tonnage. 

Number. 

Tonnage. 

Number. 

H 

Number. 

Tonnage. 

Number. 

H 

New  York 

Total.... 
Now  York 

Total.... 

28 
136 
13 
67 
234 

14,  074 
117,  768 
5,196 
67,  049 
213,  958 

25 
1 
4 
16 

360 
14,238 
250 
2,790 
8,868 

29 
161 
14 
71 
250 

14,  434 
132,  006 
5,446 
69,  839 
222,  826 

10 

58 
4 
60 
64 
11 

7,335 
54,  983 
3,  178 
63,  275 
46,750 
7,383 

31 

170 
8 
31 
227 
54 

14,  535 
141,010 

3,818 
24,  605 
108,  821 
23,  314 

228 
12 
91 
291 
65 

21,  870 
195,  993 
6,996 
87,  880 
155,  571 
30,  697 

Dutch  East  Indies. 
British  East  Indies. 
Australia. 
Philippine  Islands. 
China, 
Japan. 

France  on  Medite'n. 
Spain  on  Medite'n. 
Italy  and  Sicily. 
Austria. 
Turkey  and  Greece. 

478 

418,  045 

47 

26,506 

525 

444,  551 

207 

182,  904 

521 

316,  103 

57,  066 
39,  000 
198,  389 
30,  999 
13,  430 

728 

499,  007 

117 
209 
335 
20 
25 

56,  724 
57,  904 
145,  052 

8,718 
9,072 

68 
116 
237 
34 
46 

24,  867 
22,  810 
70,  534 
11,  684 
15,  397 

185 
325 
572 
54 
71 

81,  591 
80,  714 
215,  586 
20,402 
24,  469 

54 

88 
252 
2 
6 

26,  714 
29,459 
114,  855 
949 
2,150 

131 
141 
480 
76 
55 

185 

229 
732 
78 
61 

83,  780 
68,  459 
313,  244 
31,  948 
15,580 

706 

277,  470 

501 

145,  292 

1207 

422,  762 

402 

174,  127 

883 

338,  884 

1285 

513,  Oil 

CLEARED. 


New  York 

Total.... 
New  York 

Total.... 

30 
56 
186 
2 
145 

20,  939 
41,  617 
179,  915 
755 
124,  818 

2 
31 
22 

849 
17,  399 
12(122 

32 

87 
208 
2 

146 

21,  788 
59,  016 
192,  037 
755 
125,  187 

6 
4 
42 
1 

81 
25 

4,385 
2,925 
29,  872 
729 
71,  974 
33,  270 

10 
24 
109 

6,631 
14,  059 
61,  512 

16 

28 
151 

130 
31 

11,016 
16,  984 
91,  381 
729 
108,  356 
38,607 

Dutch  East  Indies. 
British  East  Indies. 
Australia. 
Philippine  Islands. 
China. 
Japan. 

France  on  Medite'n. 
Spain  on  Medite'n. 
Italy  and  Sicily. 
Austria. 
Turkey  and  Greece. 

1 

369 

49 
6 

36,382 
5,337 

419 

368,  044 

56 

30,  739 

475 

398,  783 

159 

143,  155 

198 

123,  921 

357 

267,  076 

150 
143 
40 
10 
51 

58,224 
38,  548 
12,  986 
4,881 
16,  713 

35 

45 
60 
14 
13 

9,421 
13,  572 
18,  979 
5,  021 
3,766 

185 
188 
100 
24 
64 

67,  645 
52,  120 
31,  965 
9,  902 
20,  479 

134 

68 
69 
2 
16 

56,  976 
23,  434 
37,  509 
1,040 
5,334 

115 
87 
192 
62 
33 

37,  357 
24,  076 
86,  840 
18,  662 
8,043 

249 
155 
261 
64 
49 

94,333 
47,  510 
124,  349 
19,702 
13,  377 

394 

131,  352 

167 

50,  759 

561 

182,  111 

289 

124,  293 

489 

174,  978 

778 

299,271 

264 


NAVIGATION   INTERESTS. 


No.  XXT. — Arrival  and  departure  of  American  and  foreign  vessels,  tfc. — Continued. 
No.  m.— DISTRICT  OF  PHILADELPHIA. 

ENTERED. 


District. 

From  1856  to  1860,  inclusive. 

From  1865  to  1869,  inclusive. 

Countries. 

American. 

Foreign. 

Total. 

American. 

Foreign. 

Total. 

Number. 

Tonnage. 

Number. 

Tonnage. 

Number. 

Tonnage. 

Number. 

I 

1 
fc 

1 

J 

ft 

I 

Philadelp'a 
Total.... 
Philadelp'a 

Total.... 

13 

11,  345 

1 

1,007 

14 

12,  352 

2 
1 

736 
421 

2 
1 

736 
421 

Br.  East  Indies. 
Australia. 

13 

11,  345 

1 

1,007     14,  12,352 

3 

1,157 

3 

1,  157 

3 
10 
97 

624 

2,350 
39,  393 

3 
13 
71 

706 
3,032 
22,201 

6 
23 

168 

1,330 
5,382 
61,  594 

1 

3 
76 

295 
921 
27,  099 

4 
5 
90 

933 

891 
25,  660 

5 
8 
166 

1,  228   Franco  on  Med'n. 
1,  812   Spain  on  Med'n. 
52,  759|  Italy  and  Sicily. 

55,  799 

110 

42,367 

87 

25,  939 

197   68,306J    80 

23,  315 

99 

27,  484 

CLEARED. 


Philadelp'a 

3 

2  613 

3 

2  613 

British  E.  Indies. 

Australia. 

1 

847 

1 

847 

Philippine  Isla'ds. 

i 

5  833 

6 

5  838 

o 

2,013 

1 

716 

3 

2,729 

China. 

I 

338 

1 

338 

Japan 

Total  

10 

9,298 

10 

9,298 

3 

2,351 

1 

716 

4 

3,067 

Philadelp'a 

4 

1,705 

3 
9 

619 
326 

7 

0 

2,324 
326 

93 

36,206 

20 

R 

6,670 
1,500 

113 

8 

42,  876 
1,500 

Franco  on  Med'n. 
Spain  on  Med'n. 

3 

919 

3 

919 

94 

7,920 

35 

10,  402 

59 

18,  322 

Italy  and  Sicily. 

1 

299 

1 

299 

7 

2,569 

9 

1,022 

q 

3,591 

Austria. 

1 

248 

1 

190 

0 

438 

Turkey  &  Greece. 

Total.... 

5 

2,004 

8 

1,864 

13 

3,868 

125 

46,  943 

66 

19,  784 

191 

66,  727 

NAVIGATION   INTERESTS.  265 

No.  XXI. — Arrival  and  departure  of  American  and  foreign  vessels,  $c, — Continued. 
No.  IV.— DISTRICT  OF  BALTIMORE. 


District. 

ENTERED. 

Countries. 

From  1856  to  1860,  inclusive. 

From  1865  to  1869,  inclusive. 

American. 

Foreign. 

Total. 

American. 

Foreign. 

Total. 

Number. 

1 

CJ 

1 

Number. 

| 

H 

M  ;  Number. 

1 
H 

1 
& 

Tonnage. 

Number. 

Tonnage. 

Number. 

Tonnage. 

Baltimore 

1 

781 

781 

Brit'h  East  Indies. 

France  on  Mcd'n. 
Spain  on  Med'n. 
Italy  and  Sicily. 

Baltimore.  . 
Total..  A 

4 
9 
46 

2,  526 
2,040 
16,  043 

2 
8 
22 

498 
1,  028 
4,  252 

6 
17 

68 

3,024 
3,068 
20,295 

5 

12 

4,"  354 
3,904 

1 

8 
46 

228 
1,683 
13,  026 

1 
13 

58 

228 
6,037 
16,  930 

59 

20,  609 

32 

5,778 

91   26,387 

17 

8,258 

55 

14,  937 

72 

23,  195 

CLEARED. 


Baltimore 

T 

1  639 

T 

1  639 

British  East  Ind's. 

9 

1,392 

9 

1  392 

Australia. 

1 

910 

1 

910 

Philippine  Islands. 

2 

3,433 

1 

1,313 

3 

4,746 

1 

ft 

679 

7  782 

2 
1 

1,309 
987 

3 
q 

1,9?8 
8  769 

China. 

Total.... 

5 

5,735 

4 

2,952 

9 

8,687 

9 

8,461 

3 

2,296 

12 

10,  757 

Baltimore.. 

22 
6 
4 
f> 

11,  746 
2,116 
1,013 
2,246 

2 
1 
4 

337 

189 
659 

24 
7 
8 
5 

12,  083 
2,305 
1,  672 
2,246 

5 

7 
5 

2,  438 
2,  121 
1,383 

2 
7 
6 
1 

1,627 
1,031 
1,156 
246 

7 

14 
11 
1 

4,065 
3,  152 
2,539 
246 

France  on  Med'n. 
Spain  on  Med'n. 
Italy  and  Sicily. 
Austria. 

Total.... 

37 

17,  121 

7 

1,185 

44 

18,306 

17 

5,942 

16 

4,060 

33 

10,002 

266 


NAVIGATION   INTERESTS. 


No.  XXI. — Arrival  and  departure  of  American  and  foreign  vessels,  ^-c.— Continued. 
No.  V.— DISTRICTS  OF  RICHMOND  AND  CHARLESTON. 

ENTERED. 


Districts. 

From  1856  to  I860,  inclusive. 

From  1865  to  1869,  inclusive. 

Countries. 

American. 

Foreign. 

Total. 

American. 

Foreign. 

Total. 

Number. 

1 

H 

1 
fc 

$ 

• 

H 

1 
fc 

Tonnage. 

1 

Tonnage. 

Number. 

Tonnage. 

Number. 

Tonnage. 

Richmond  . 
Charleston  . 
Charleston. 

Total.... 

1 

533 

1 
2 

533 

Spain  on  Med. 
British  E.  Indies. 

France  on  Med. 
Spain  on  Med. 
Italy.  • 
Austria. 
Turkey. 

1,029 

1 

883 

1 

1,912 

3 
5 

2,144 
3,535 

4 
49 
4 

1,216 

18,  986 
1,982 

1 

533 

2 

967 



9 

6,212 

59 

23,  151 

Richmond  . 
Richmond  . 

Total.... 
Charleston  . 
Charleston. 

Total.... 

6 

8 
4 
33 

4,294 

Australia. 

Franco  on  Med. 
Italy. 
Austria. 

China. 

France  on  Mod. 
Spain  on  Med. 
Italy. 
Austria. 

< 
ft 

4,414 
2,073 
18,  310 

4,414 

2 
5 

672 
3,143 

6 
38 

2,745 
21,  453 

5 
5 

1,439 
1,725 

5 
5 

1,439 
1,725 

45   24,797 

7 

3,815 

'  '_  "  — 

52 

28,  612 

10 

3,164 

10 

3,164 

1 

572 

1 

572 

7 
13 
4 
2 

2,222 
3,906 
1,801 
1,209 

4 
377 

1 

913 

99,  993 
290 

1 

235 

43 

9,333 



26 

9,138 

382 

101,  196 

1 

235 

43J    9,  333 

NAVIGATION  INTERESTS.  267 

No.  XXI. — Arrival  and  departure  of  American  and  foreign  vessels,  fc.-— Continued. 
No.  VI.— DISTRICT  OF  NEW  ORLEANS. 


District. 

ENTERED. 

Countries. 

From  1856  to  1860,  inclusive. 

From  1865  to  1869,  inclusive. 

American. 

Foreign. 

Total. 

American. 

Foreign. 

Total. 

1 
ft 

H 

Number. 

| 

1 

ft 

H 

Number. 

H 

Number. 

Tonnage. 

Number. 

Tonnage. 

N.  Orleans  . 
Total  .... 
N.  Orleans  . 

Total.... 

7 
1 

8 

6,909 
997 

3 

i 

2,673 
1,207 

10 
2 

9,582 
2,204 

1 

1.  043 

3 

3,359 

4 

4.402 

British  E.  Indies. 
Australia. 

Franco  on  Med. 
Spain  on  Med. 
Italy  and  Sicily. 
Austria. 
Turkey  &  Greece. 

- 

7,906 

I 

3,880 

12 

11,  786 

39,  921 
82,  544 
113,  112 
12,  031 
6,990 

1,043 

3 

3,359 

4 

4,402 

30 
42 
107 
12 
5 

30,  034 
25,083 
71,  762 
11,483 
5,418 

21 
129 
115 
1 

2 

9,887 
57,  461 
41,  350 
548 
1,572 

51 
171 
222 
13 
7 

5 
12 
12 

3,009 
8,  942 
4,275 

13 

12 
57 

5,759 
6,284 
16,  626 

18 
24 
69 

8,708 
15,  226 
20,  901 

196 

143,  780 

268 

110,  818 

464 

254,  598 

29 

16,  226 

82 

28,669 

111 

44,  895 

CLEARED. 


N.  Orleans  . 
Total.... 
N.  Orleans  . 

2 

2,253 

2 

2,253 

British  E.  Indies. 
Australia. 

Franco  on  Med. 
Spain  on  Med. 
Italy  and  Sicily. 
Austria. 
Turkey  &  Greece. 



2 

68 
28 
140 
40 

2,253 

2 

2,253 

34,  003 
13,  607 
91,  433 
25,  440 

28 
443 
53 
13 

11,  050 
160,  454 
19,  688 
5,067 

96 
471 
193 
53 

45,  053 
174,  061 
111,  121 
30,507 

3 
5 
10 

1,261 
1,960 
4,606 

4 
194 

28 

919 

58,  274 
7,042 

7 
199 
38 

2,180 
60,234 
11,  648 

360,  742 

276 

164,  483|  537 

196,259 

813 

18 

7,827 

226 

66,235 

244 

74,062 

268 


NAVIGATION   INTERESTS. 


No.  XXI. — Arrival  and  departure  of  American  and  foreign  vessels,  $ c. — Continued. 
No.  VH.— DISTRICTS  OP  SAN  FRANCISCO  AND  PUGET  SOUND. 


District. 

ENTERED. 

Countries. 

From  1855  to  1860,  inclusive. 

From  1865  to  1869,  inclusive. 

American. 

Foreign. 

Total. 

American. 

Foreign. 

Total. 

Number. 

I 

Number. 

Tonnage. 

Number. 

H 

Number. 

<o 
to 

H 

Number. 

Tonnage. 

Number. 

Tonnage. 

S.  Francisco 

Total  .... 
S.  Francisco 
Total.... 
Puget  So'nd 

Total.... 

12 
8 
32 
12 
107 
8 

4,998 
5,006 
14,910 
5,363 
90,  999 
1,604 

11 
5 

40 
9 
69 
1 

3,820 
2,025 
17,  436 
2,827 
35,  108 
126 

23 
13 
72 
21 
176 
9 

8,818 
7,031 
32,  346 
8,190 
126,  107 
1,730 

2 

469 

13 
11 

182 
9 
94 
28 

4,736 
6,628 
89,  651 
7,236 
63,  726 
13,720 

15 
11 

222 
18 
156 
68 

5,205 
6,628 
114,  306 
13,  293 
118,  807 
91,  793 

Dutch  E.  Indies. 
British  E.  Indies. 
Australia. 
Philippine  Islands. 
China. 
Japan. 

France  on  Med. 
Spain  on  Modite'n. 

Australia. 
France  on  Mod. 
China. 
Japan. 

40 
9 
62 
40 

24,  655 
6,057 
55,  081 
78,  073 

179 

122,880 

135 

61,  342 

314 

184,  222 

153 

164,  335 

337 

185,  697 

2,  821 
989 

490 

350,  032 

6 
1 

2,132 
369 

6 
3 

2,132 
830 

6 
3 

6 
3 

2,  821 
989 

3,810 

2 

461 

2 

461 

7 

2,501 

9 

2,962 

9 

3,810 

9 

1 

532 

2 
1 

1 

961 
424 
273 

3 
1 

1 

1,  493 
424 
273 

1 

336 

1 

336 

1 

3,469 
449 

6 
1 

6,517 
650 

11 
2 

9,986 
1,099 

1 

532 

4 

1,658 

5 

2,190 

6 

3,918 

8 

7,503 

14 

11,  421 

S.  Francisco 

Total  .... 
S.  Francisco 
Pugot  So'nd 

Total  .... 

8 
56 
70 
41 
204 
10 

4,571 
59,  319 
43,  644 
37,  000 
213,  841 
2,281 

8 
11 
74 
5 

78 

3,458 
4,668 
32,  140 
1,835 
38,  835 

16 
67 
144 

46 
282 
10 

8,029 
63,  987 
75,  784 
38,  835 
252,  676 
2,281 

1 

6 
23 
11 
92 
35 

164 
5,994 
12,  190 
10,  979 
88,  503 
79,690 

5 
6 
156 
5 
83 
6 

2,067 
2,861 
64,  596 
1,745 
50,782 
1,735 

6 
12 
179 
16 
175 
41 

2,231 

8,855 
76,  786 
12,  724 
139,  285 
81,425 

Dutch  E.  Indies. 
British  E-.  Indies. 
Australia. 
Philippine  Islands. 
China. 
Japan. 

Franco  on  Med. 

British  E.  Indies. 
Australia. 
China. 
Philippine  Islands 

389 

360,  656 

176 

80,936 

565 

441,  592 

168197,520 

261 

•  "     '    ^ 

123,  786 

429 

321,  306 

1 

1,016 

1 

1,016 

4 
21 
24 

1,734 

12,  855 
17,839 

4 
34 
32 
1 

1,734 

21,  484 
22,569 
738 

8 

7 

5,837 
3,026 

G 

8 

3,302 
3,104 

14 
15 

9,139 
6,130 

13 
8 
1 

8,629 
4,730 
,738 

~~29 

15 

8,863 

14 

6,406 

15,  269 

22 

14,  097 

49 

32,428 

71 

46,525 

NAVIGATION   INTERESTS. 


269 


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NAVIGATION   INTERESTS. 


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NAVIGATION  -  INTERESTS. 


271 


No.  XXIII. — Statement  of  steamers  making  regular  trips  between  ports  of  the  United  States 
and  foreign  ports,  in  1860  and  in  1869. 

TABLE  A. 

STEAMSHIP  LIKES  FROM  NEW  YORK  TO  FOREIGN  PORTS.— 1860. 


Name  of  lino  and  port  of  des 
tination. 

Names  of  steamers. 

I 

H 

"3 
2 

! 

Total  tonnage 
each  line. 

Pacific  Mail  Steamship  Line 

Atlantic 

2  846 

Wood 

5  569 

From  New  York  to  Aspin- 

Baltic  

2  723 

do 

do 

wall. 
Atlantic  Mail  Steamship  Line 

Ariel 

1  295 

"Wood 

6  074 

From  New  York  to  Aspin- 
wall. 

North  Star....*  
Northern  Light  

1,868 
1,768 

.do... 
do  . 

.  .  .do. 
do 

From  Now  York  to  Havana 

Quaker  City 

1  143 

do 

do 

North  Atlantic  Mail   Steam 

Adriatic 

4  145 

Wood 

9  630 

ship  Line.    From  New  York 

Illinois  

2,  124 

.do... 

...do. 

to  Havre 

Vanderbilt 

3  361 

do 

do 

Havre  Steam  Navigation  Com 

Arago 

*2  240 

Wood 

4  548 

pany.    From  New  York  to 

Fulton  ... 

*2  308 

do 

do 

Havre. 
North  German  Lloyds.    From 

Bremen  

2  398 

Iron  .  . 

German 

4  764 

New  York  to  Bremen   via 

New  York 

2366 

do 

do 

Southampton. 
Hamhurgand  American  Steam 

Hammonia   

*2  964 

Iron. 

German 

9  359 

Packet*    Company.      From 

*2  133 

do 

do 

New  York  to  Hamburg. 

Bavaria   

*2*  235 

do 

do 

Teutonia 

*°  027 

do 

do. 

British  and  North  American 

Africa 

2  087 

Wood 

British 

25  744 

Royal  Mail  Steamship  Com 
pany.    From  New  York  to 

Asia  
Arabia  

2,051 
2  286 

..do... 
Iron.  . 

....do. 
...do. 

Liverpool. 

Australasian 

2  663 

do 

do 

Balbec 

940 

do 

do 

Etna 

1  968 

Wood 

do 

Java  

*2  781 

Iron 

do. 

Jura 

2  045 

do 

do 

Kedar  

*1  825 

do 

do. 

Persia 

3  688 

Wood 

do 

Damascus  

1,116 

..do... 

...do. 

2  294 

do 

Liverpool,   New    York,     and 

City  of  Baltimore  

*2,  323 

Iron  -  . 

British  

13,  372 

Philadelphia  SteamshipCom- 

City  of  Washington 

*2  386 

do 

do. 

pany,  "Inman  Line."    From 

City  of  Manchester  

*1,  895 

..do... 

.  .  .  .do. 

New  York  to  Liverpool,  via 

City  of  Edinburgh 

2  188 

do 

do. 

Queenstown. 

Glasgow  

1,649 

..do... 

....do. 

Kangaroo  

Vijro  .  .  . 

1,516 
1,415 

..do... 
do... 

...do. 
....do. 

Anchor    Line       From    New 

John  Bell 

1  103 

'British 

3  392 

York  to  Glasgow. 

United  Kingdom  
United  States  

1,155 
1,134 

..do... 
.do  . 

...  do. 
.  .  .  .do. 

Galway   Line        From   Now 

Prince  Albert 

431 

British 

7  082 

York  to  Galway. 

Parana 

2  570 

do 

do. 

Golden  Fleece  

2  328 

do 

....do. 

Circassian  

li753 

..do.. 

....do. 

Tonnage  under  new  admeasurement. 


NOTE.— It  may  be  proper  to  state  that  there  may  have  been  other  vessels  belonging  to  the  above  linea 
in  1860 ;  if  so,  they  did  not  come  to  this  port  in  that  year. 


272 


NAVIGATION   INTERESTS. 


No.  XXin. — Statement  of  steamers  making  regular  trips  between  ports  of  the  United  States 
and  foreign  ports,  in  1860  and  in  1869— Continued. 

STEAMSHIP  LINES  FROM  PORT  OF  NEW  YORK  TO  FOREIGN  PORTS,  JANUARY  1, 1870. 


Name  of  line  and  port  of  des 
tination. 

Names  of  steamers. 

Tonnage. 

Material. 

£ 

£ 

Total  tonnage 
each  line. 

New  York  and  Mexican  Steam 

City  of  Mexico  screw 

1,200 

Wood. 

American  

2,325 

ship  Line     From  New  York 

Cleopatra                              do 

1  125 

do 

..do. 

to  Vera  Cruz  and  Sisal,  via 
Havana. 

Atlantic  Mail  Steamship  Line. 

Moro  Castle  side-wheel. 

1,680 
1  385 

Wood, 
do 

American  
do 

5,216 

Columbia  «  .  do  .  . 
Missouri  screw 

l'f  271 
1  180 

.do... 
do... 

...do. 
.  .  .do. 

Pacific  Mail  Steamship  Line. 
From  New  York  to  Aspin- 
wall 

Henry  Chauncey  ..side-wheel. 
Arizona  do.. 
Alaska          .       .             .  do 

2,556 
2,740 
4  Oil 

Wood, 
.do... 
do  .. 

American  
...do. 
...do. 

12,  034 

United  States  and  Brazil  Mail 

Rising  Star  do.. 
Merrimack  screw  . 

2,727 
2,031 

.do... 
Iron  .  . 

.  .  .do. 
American  

6,166 

Steamship  Lino.    From  New 
York  to  Rio  de  Janeiro,  via 

South  America  side-wheel. 
North  America.  ........  screw  . 

2,050 
2,085 

Wood, 
.do... 

...do. 
...do. 

the  West  Indies. 
New  York  and  Bermuda  Steam 

Fah  Kee       ...      ...      screw 

601 

Wood. 

American  

601 

ship  Line.    From  New  York 
to  Bermuda. 

City  of  Port  au  Prince   screw 

371 

Iron  .  . 

American  .... 

371 

British  and  North  American 

Russia         .        .             screw. 

3  013 

Iron 

British  .  .  . 

42  038 

Royal  Mail  Steamship  Line. 

Scotia  side-wheel. 

3,865 

..do. 

.  .  .  .do. 

From  New  York  to  Liver 

China                                .  screw 

2  661 

do 

do. 

pool 

Cuba  do.. 

2,781 

do 

...do. 

Java                                      do 

2  781 

do 

...do. 

Tarifa  do  . 

2,  118 

do 

....do. 

Siberia                                  do 

2  538 

do 

.  do. 

Aleppo      do. 

2,  103 

do  . 

.  do. 

Samaria  do  . 

2,605 

..do.. 

....do. 

Tripoli          do. 

2  059 

do  . 

....do. 

Palmyra                               do 

1  389 

do 

.   .do. 

Atlas'*          do. 

1,650 

do 

.  .  .  .do. 

Kedar  do  . 

1,  825 

..do.. 

....do. 

Malta      do. 

2  206 

do 

.  .  .  .do. 

Marathon  do  . 

1,819 

..do.. 

....do. 

Ol  vmpus*          do  . 

1,219 

do 

....do. 

Palestine*  do. 
Sidon*  do. 

1,468 
1,703 

..do.. 
..do.. 

.  .  .do. 
....do. 

Batavia  do  . 

2,235 

..do.. 

....do. 

City  of  Paris                    screw 

2  646 

British 

26  814 

Philadelphia    "Dale  Line" 

City  of  Antwerp                 do 

2  400 

do 

..  do. 

From  New  York  to  Liver 
pool. 

City  of  London  do. 
City  of  Dublin  do. 

2,807 
1,997 

..do.. 
..do.. 

....do. 
....do. 

City  of  Baltimore    do  . 

2,323 

do  . 

...do. 

City  of  Washington            do 

2  386 

do 

..do. 

City  of  Manchester  do. 
City  of  Limerick  do  . 
City  of  Brooklyn      do. 

1,  895 
1,604 
2,974 

..do.. 
..do., 
do 

.  .  .  .do. 
.  .  .  .do. 
...do. 

City  of  New  York  do. 
City  of  Cork  do. 

2,094 
1,540 

..do., 
do  . 

.  .  .  .do. 
...do. 

Etna                                      do 

2  208 

do 

do. 

Liverpool  and  Great  Western 

Manhattan                       screw 

2  965 

British  

18,  594 

Steamship  Line.   From  New 

Minnesota     do 

2  965 

do 

...do. 

York  to  Liverpool. 

Nebraska  do  . 
Nevada  do. 

3,392 
3  125 

..do., 
do 

....do. 
...do. 

Colorado  do. 
Idaho...                            ...do. 

3,015 
3.132 

..do.. 
..do.. 

....do. 
...do. 

*  Made  no  trip  in  1869. 


NAVIGATION   INTERESTS. 


273 


No.  XXIII. — Statement  of  steamers  making  regular  trips  between  ports  of  the  United  States 
and  foreign  -ports,  in  1860  and  18G9 — Continued. 

STEAMSHIP  LINES  FROM  POUT  OF  NEW  YOUK  TO  FOREIGN  PORTS,  JANUARY  1, 1870. 


Name  of  line  and  port  of  des 
tination. 

Names  of  steamers. 

Tonnage. 

Material. 

! 

Total  tonnage 
each  line. 

Anchor  Line.       From    New 
York  to  Glasgow,  via  Lon 
donderry  and  Liverpool. 

[A  part  of  this  lino  during  a 
portion  of  the  year  runs  to 
Mediterranean  ports.] 

London  and  New  York  Steam 
ship  Line.    From  New  York 
to  London,  via  Brest. 

National      Steamship     Line. 
From  New  York  to  Liver 
pool. 

General  Transatlantic    Com 
pany.    From  New  York  to 
Havre,  via  Brest. 

New  York  and  Bremen  Steam 
ship  Line.    From  New  York 
to  Bremen. 

North  German  Lloyds.    From 
New  York  to  Bremen. 

Hamburg  and  American  Steam 
Packet     Company.       From 
New  York  to  Hamhurg. 

Columbia                          screw. 

1,716 
1,418 
1,418 
1,  039 

Iron  .  . 
..do... 
do 

British 

24,  640 

5,948 
23,301 

9,518 

1,797 
25,  947 

26,681 

\ 

Caledonia  do.. 

....do. 
do. 

Britannia                               do 

Daoian  do.. 

..do... 

....do. 

Iowa  do.. 

2,030 

..do... 

...do. 

Dacian  do  -  . 

1,030 
1,747 
2,  141 
1,039 

..do... 
..do... 
..do... 
..do... 

....do. 
....do. 
....do. 
.  .  .do. 

Cfimhria    do  .  . 

T  yrian  do  .  . 

Siibriua                               -do  . 

2,538 
2,  1GG 
915 

..do... 
..do... 
do  . 

.  .  .  .do. 
....do. 
....do. 

India    do.. 

Iloxanna                               do 

Palm  yra  do  .  . 

717 
862 
755 

..do... 

...do. 

Statira                                  do 

.  do 

do. 

Acadia  .          do.. 

..do... 

....do. 

Noi  thumbria  do  .  . 
An^lia                                  do 

900 

2,  200 

2,110 
1,845 

do 

do. 

..do... 

....do. 

Atlanta                             screw 

Iron  .  . 
..do... 

British  .  .  . 

Bellona   do  .  . 

.  .  .do. 

Cell  a                                    do 

1,993 

3,441 

3,560 
3,327 
3,  178 

..do... 

Iron.. 
..do... 
do 

....do. 

British  .  .  . 
....do. 
do. 

England                            screw 

The  Queen                             do 

Denmark                              do 

..do... 

....do. 

Erin  do.. 
Pennsylvania                       do 

3,  336 

2,873 
3,586 

1,929 
1,809 
2,048 

..do... 
..do... 
..do... 

Iron.. 
..do... 
..do... 

....do. 
....do. 
.  .  .  .do. 

French  
....do. 
...do. 

Franco        do.. 

Europe      side-wheel 

St.  Laurent               .  .        do 

Ville  de  Paris  do.  . 

1,809 
1,923 

1,797 

2,614 
2,747 
2,870 
2,009 
2,881 
2,871 
3,019 
3,018 
3,018 

2,133 
2  591 

..do... 
..do... 

Iron.. 

Iron  .  . 
..do... 
..do... 
..do... 
..do-., 
do 

....do. 
....do. 

North  German 

North  German 
....do. 
....do. 
....do. 
.  .  .  .do. 
do 

Lafavetto             ...side-wheel 

Smidt                                screw 

America                           screw 

Herman  ..  do  .  . 

Union                                     do 

Hansa          .        do.. 

Deutchland  do  .  . 

Khino                                     do 

..do... 
..do-.. 
..do... 

Iron., 
do 

.  .  .  .do. 
.  .  .  .do. 
....do. 

North  German 
do 

Main                                     do  . 

Doran  do  .  . 

Borussia    screw 

Hammonia  do.. 

2,064 
2  620 

..do... 
..do... 

.  .  .do. 
....do. 

2,235 
2,  027 
2,964 
3,  026 
3,  054 
3,067 

do 

do. 

..do... 
..do... 
..do... 

....do. 
.  .  .  .do. 
...do. 

Cimbria      do.. 

Holsatia                                do 

"Westphalia  do.  . 

Silesia                                   do 

..do... 
..do... 

....do. 
.  .  .  .do. 

NOTE. — Some  of  the  above  lines  have  spare  steamers,  not  in  use  at  present,  and  not  included  In  fore 
going  list. 

18  N  I 


274 


NAVIGATION   INTERESTS. 


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North  German  Lloyd  Company  
Total  to  Baltimore.  .  . 

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SAN  FRANCISCO. 

Pacific  Mail  Steamship  Company  

NAVIGATION    INTERESTS. 


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276 


NAVIGATION    INTERESTS. 


No.  XXV. — Statement  of  American  steam  lines  making  regular  trips  between  ports  of  \hc 
United  States  and  foreign  ports. 


Name  of  line. 

To  what  foreign  port. 

When  estab 
lished. 

STnmber  of 
steamers. 

Number 
of  trips. 

Tonnage. 

PORTLAND. 

Portland  and  Halifax  

1  Halifax,  1  St.  Johns.. 

Charlotte  Town  
St.  Johns    

18G7  

1868  
1866  

2 

50 

1,  096.  71 

BOSTON. 

Nickerson  &  Co.'s  lino  

3 
1 

3 

About  38 
About  40 

1,  840.  36 
449.  27 

3,  067.  34 

I.  Gr.  Hall  &  Co  's  lino 

International    Steamship    Co., 
(owned  in  Portland) 

Boston  and  Portland 

Total  Boston 

7 



5,  356.  97 

NEW  YORK. 

New  York  and  Mexican  Mail 
Steamship  Co  
Xew  York  and  Bermuda  Steam 
ship  Lino  

Vera  Cruz  

Bermuda  

Havana 

1868  
1868  

2 

1 
4 

18  . 
20 

2,  141.  23 

601.  00 
5,  544.  16 
12,  034.  00 

6,  435.  17 
490.  00 

Atlantic  Mail  Steamship  Co  ... 
Pacific  Mail  Steamship  Co  
United  States  and  Brazil  Mail 
Steamship  Co  . 

Aspiuwall  
Rio  de  Janeiro  

1849  
1865 

4 
3 
1 

26 
12 
12 

New  York  and  Port  au  Prince 
Lino  

Port  au  Prince  

1864  

Total  New  York  

15 

27,  245.  56 

NEW  ORLEANS. 

Alliance  Line 

1866 

4 

52 

1,  676.  09 

SAN  FRANCISCO. 

Pacific  Mail  Steamship  Co  
Pacific  Mail  Steamship  Co  
North  Paci  fie  Transportation  Co 
North  Pacific  Transportation  Co 
North  Pacific  Transportation  Co 

Total  San  Francisco    .  .  . 

Panama  

1849  

G 

4 
4 

24 
12 

18,  023.  50 
16,  3G9.  67 
3,  620.  25 
2,  883.  50 
1,  077.  13 

Hong  Kong  

Victoria 

1867  

Mazatlan 

Honolulu 

1 

17 

41,  974.  14 

Total  

45 

77,  351.  47 

No.  XXVI. — Comparative  statement  of  English  steamers  entered  and  cleared  at  Portland. 
Maine,  dining  the  fiscal  year  1360,  and  during  the  fiscal  near  1869,  for  transatlantic  ports. 


Names  of  steamers. 

Tonnage. 

Class. 

Names  of  steamers. 

Tonnage. 

Class. 

1860. 
1    Hungarian 

487 

1869. 

2  G50 

2.  Au°lo-Saxon 

165 

Iron  screw 

2   Prussian 

3  056 

Iron  screw 

3.  Nova  Scotian  

2  266 

Iron,  screw. 

3.  Nova  Scotian  

2,  2G5 

Iron,  screw. 

4.  North  American 

816 

Iron  screw 

4    Moravian 

2  241 

Iron  screw 

5.  North  Briton  

,487 

Iron,  screw. 

5.  North  American  

1,816 

Iron,  screw. 

6.  Bohemian 

483 

Iron  screw 

6.  Nestorian 

2  665 

Iron  screw 

7.  Canadian  

,310 

Iron,  screw 

7.  Peruvian  

2,566 

Iron,  screw. 

8.  Australasian 

1  512 

8    Hibernian 

2  444 

Iron  screw 

0    St  Andrew's 

1  345 

Total  tonnage 

12  531 

10   Damascus 

1,  359 

Iron  scrt  w 

• 

11.  Scandinavian  

3,  400 

Iron,  screw. 

Total  tonnage  

25,  807 

NAVIGATION    INTERESTS. 


277 


No.  XXVII.— Steamship  lines. 
RECAPITULATION. 


Number  of 
vessels. 

s5 
1° 
H 

American  line  steamers  trading  with  foreign  ports,  not  transatlantic,  January  1,  1870  .  . 
American  lino  steamers  tradin""  with  forei"u  ports,  not  transatlantic  1SGO 

15 
G 

27,  013 
11,643 

Increase  in  American  tonnage  since  I860  

9 

15,  370 

American  lino  steamers  trading  with  transatlantic  ports,  in  I860 

5 

None. 

14,178 
None. 

American  lino  steamers  trading  with  transatlantic  ports  January  1,  1870    

5 

14,  178 

British  lino  steamers  trading  with  transatlantic  ports,  January  1,  1870  

64 

26 

ill,  :<:•:. 
51,  610 

British  line  steamers  tradin"*  with  transatlantic  ports  in  1860 

Increase  in  British  tonnage  since  I860 

38 

89,  783 

German  lino  steamers  trading  with  transatlantic  ports,  January  1,  1870  

20 
6 

54,  425 
14,  123 

German  lino  steamers  tradin«T  with  transatlantic  ports  in  I860      ... 

Increase  in  German  tonnage  since  18GO 

14 

40,  302 

French  line  steamers  tradin"1  with  transatlantic  ports  January  1  1870 

5 

None. 

9,518 
None. 

French  line  steamers  tradin"1  with  transatlantic  ports  in  I860    

Increase  in  French  tonnage  since  I860      

5 

9,518 

Total  number  of  steamers  and  tonnage  coming  to  New  York  from  transatlantic  ports 

89 
32 

205,  338 
65,733 

Total  number  of  steamers  anil  tonnage  coming  to  New  York  from  transatlantic  ports 
under  ibreiTi  fla<rs  in  1860  

Total  increase  of  forci^Ti  tonnage  since  1860  

57 

139,  G05 

Total  number  of  steamers  and  tonnage  coming  to  Baltimore  from  transatlantic  ports 
under  foreign  fla<rs,  January  1,  1870  

4 
None. 

9,  249 
None. 

Total  number  of  steamers  and  tonnage  coming  to  Baltimore  from  transatlantic  ports 

Total  increase  of  foreign  tonnage  since  1860  .'  

4 

9,  249 

Total  number  of  steamers  and  tonnage  coming  to  Portland  from  transatlantic  ports 

11 

8 

25,807 
12,531 

Total  number  of  steamers  and  tonnage  coming  to  Portland  from  transatlantic  ports 

3 

13,  276 

Total  number  of  steamers  and  tonnage  coming  to  New  Orleans  from  transatlantic  ports 
nnder  foreign  flags  January  1870 

9 
None. 

10,  417 

None. 

Total  number  of  steamers  and  tonnage  coming  to  New  Orleans  from  transatlantic  ports 
under  foreign  fla^s  January  1860 

Increase  of  foreign  tonnage  since  I860 

9 

10,  417 

1,678 
None. 

Number  of  American  steamers  and  tonnage  trading  between  New  Orleans  and  foreign 
ports  not  transatlantic  January  1870     

4 

None. 

Number  of  American  steamers  arid  tonnage  trading  between  New  Orleans  and  foreign 
ports  not  transatlantic  January  1860     

Increase  of  American  tonnage  since  1860       ..   .                    

4 

1,678 

Number  of  American  steamers  and  tonnage  running  between  San  Francisco  and  foreign 

17 
6 

41,  974 
18,  023 

Number  of  American  steamers  arid  tonnage  running  between  San  Francisco  and  foreign 

11 

23,  951 

73 
19 

172,  547 

26,  821 

Net  increase  of  American  tonnage  since  1860    

278 


NAVIGATION   INTERESTS. 


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East  Indies 
China  and  Japan 
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NAVIGATION   INTERESTS. 


281 


No.  XXX. — Amounts  paid  to   American  and  foreign  steamships  for  the  sea  conveyance  of 
United  States  mails  from  I860  to  1869,  inclusive. 


Fiscal  year  ending  — 

Vessels. 

Paid  to  vessels 
under  contract. 

Postages  paid 
as  compensa 
tion  for   the 
sea    convey 
ance  of  mails. 

Total  amounts 
paid. 

June  30  I860    

American  

$426,  635  95 

$280  712  53 

$707  348  48 

June  30  18l!0 

Forci'Ti 

147  085  34 

147  085  34 

Juno  30  1661 

American  

306  970  70 

306  ()70  70 

June  30  1861 

Foreign 

235  713  54 

235  713  54 

Juno  30  1862 

American 

90  303  77} 

<IO  303  77J 

June  30  1862 

28r>  884  °3} 

285  884  23£ 

June  30  1803 

American 

55  663  13 

55  663  13 

June  30  1863      

Foreign  

332  184  80 

332  184  80 

June  30  1804 

American 

Juno  30  18G4 

Foreign       

371  740  43 

371  740  43 

June  30  18Gf> 

65  555  52 

65  555  52 

Juno  30  18G5 

Foreign 

405  479  56 

465  479  56 

June  30  1  SCO        

American  

112,  500  00 

136  089  33 

248  589  33 

June  30  18G6 

464  978  60 

465  978  60 

Juno  30  li=67 

American  

233,  333  33 

181  522  74 

414  856  07 

June  30,  1867  

Foreign  

455,049  32 

455,  049  32 

June  30.  18G8  
Juno  30,  18G8  
June  30  1869 

American  
Foreign  

497,  916  66 
683  333  33 

132,  095  09 
387,  304  35 
82  178  54 

630,011  75 
387,  304  35 
765  511  87 

June  30  18G9        

Forei°n        

336,  163  24 

336,  163  24 

Total 

1  953  719  27 

4  536  220  31 

6  7G2  039  58 

RECAPITULATION. — Sum  total  paid  to  American  and  foreign  ships,  as  compensation  for  the  sea  con 
veyance  of  mails,  from  I860  to  1869  inclusive,  $6,  762,  039  58. 


No.  XXXI.-*-£lafemen£  of  the  rates  of  duty  upon  the  descriptions  of  iron  most  used  in  ship 
building  under  various  tariff's. 

[Submitted  by  FRANKLIN  SMITH,  of  Atlantic  Iron  Works,  Boston,  October  21,  1869.] 


1 

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„ 

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la 

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^^  .a  e) 

fc  •°<_<N  *  . 

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Q 

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Plates,  (most  used  in  ship-building)  

$43  80 

24  per  ct. 

$20  00  or  46 

$33  60  or  77 

$33  60  or  77 

per  cent. 

per  cent. 

per  cent. 

Common  rounds  and  squares,  f  inch  

29  93 

24  per  ct. 

15  CO  or  50 

33  60  or  112 

50  40  or  168 

per  ceiit. 

per  cent. 

per  cent. 

Common  rounds  and  squares,  11-16  inch.. 

29  93    24  per  ct. 

15  00  or  50 

33  60  or]  12 

33  60  or  112 

per  cent. 

per  cent. 

per  cent. 

Commonronnds  and  squares,  J  to  2  inches. 

29  93 

24  per  ct. 

15  00  or  50 

22  40  or  75 

22  40  or  75 

per  cent. 

per  cent. 

per  cent. 

Common  rounds  and  squares,  2£  to  3  inches. 

29  93 

24  per  ct. 

15  00  or  50 

33  60  or  112 

33  60  or  112 

per  cent. 

per  cent. 

per  cent. 

Flats,  H  to  6  inches  wide  ;  i  to  5-16  thick. 

29  93 

24perct. 

15  00  or  50 

33  60  or  112 

33  60  or  112 

per  cer  t. 

per  cent. 

per  cent. 

Refined  of   ordinary  sizes,  rounds   and 

34  80 

24  per  ct. 

15  00  or  43 

33  60  or  97 

50  40  or  145 

squares,  J,  9-16,  and  f  inch. 

per  cent. 

per  cent. 

per  cent. 

282 


NAVIGATION   INTERESTS. 


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•  • 

Imports  into  the  United  States,  (specie  value)  .  .  . 

Imports  into  United  Kingdom,  (specie  value)... 

Exports  from  the  United  States  : 
Domestic  exports,  (mixed  gold  and  currency  value)  
Foreign  produce  re-exported,  (mixed  gold  and  currency  value)  .  
Total  United  States,  (mixed  gold  and  currency  value)  .. 

Exports  from  the  United  Kingdom  : 
Domestic  exports,  (specie  value)  .  . 

Foreign  and  colonial  produce  re-exported,  (specie  value)  
Total  United  Kin  trdom.  (specie  value)  ... 

• 
! 

» 

D 

INDEX. 


TESTIMONY. 


Name. 


Subject. 


Boole,  L.  H 

Brett,  Gustavus  A 

Buck,  R.P 

Clark,  Captain  J.  S  ... 


Cobb,  Francis... 
Cope,  Francis  R 


Coyle,  J.B 

Cramp,  Charles  H 

Curtis,  Paul 

Davis,  Captain  Charles 


Derby,  E.  H 


Dyer,  Joseph  W 

Edmunds,  Henry  R 

Elwell,  James  TV" 

Everman,  John  W 

Fitzpatrick,  Philip 
Foulke,  "William...*.... 
Gibbons,  William  G  ... 

Hall,  Andrew  T 

Hall,  Samuel 


Harlan,  Samuel,  (Har- 
lan  and  Hollings- 
worth.) 

Hayden,  John 

Hichborn,  N.  G 

Hincken,  Edward 

Hoffmire,  John  E 


House,  Eben... 
House,  Osborn. 


Howland,  Mr.  (Howland 

and  Frothiughani.) 
Loring,  Giles 

Loring,  Harrison 

Low,  A.  A 


McKay,  Nathaniel 

Medara,  Lewis  C 

Nelson,  William,  jr 

Nesmith,  Mr 


Nickerson,  Theodore. . . 


American  ship-builders  could  compete  with  remission  of  duties  to  aid 

them.    Canadian  vessels  cost  about  40  per  cent,  less  than  ours. 
Offers  letter  of  J.  T.  Woodberry  favoring  abrogation  of  navigation 

laws.    Cheap  ships  is  the  needed  remedy. 
Registration  of  foreign  ships  would  destroy  all  ship-building  interests 

and  the  coasting  trade.    Favors  drawbacks. 
Thought  labor  cheaper  hero  than  abroad,  as  more  work  was  done. 

Urged  the  use  of  ship  stores  free  of  duty. 

Wages  of  ship-carpenters.    Cost  of  building  ships  per  ton 

Competition  with  our  ship-building  interests.    Reduction  of  tariff 

necessary. 
Onerous  taxes  imposed  on  coasting  steamers.    Opposed  to  appeal  of 

navigation  laws. 
English  marine  superiority  duo  to  their  building  best  engines  in  the 

world.    High  tariff  on  ship  materials  injurious.    American  labor 

best. 
Rates  of  labor.    Cost  of  materials.    Price  of  ships.    With  drawback 

could  compete  in  wooden  ships.    Doubtful  about  iron. 
American  seamen  not  deteriorating.    No  demand  for  ships  because 

of  high  prices.    Cause  of  decline  in  navigation  interests.    Quality 

of  provincial  ships.    Favors  drawback. 
Decline  of  our  commerce.    Its  causes.     Effect  of  tariffs.     Favors 

remission  of  duties  and  a  partial  admission  of  foreign-built  ships 

to  registration.    Argues  for  subsidies. 

Rates  of  wages  in  Maine.    Cost  of  ships  now  and  before  the  war 

Coastwise  trade,  ship-building  and  owning  injuriously  affected  by 

high  tariff  and  taxes. 

Does  not  favor  present  repeal  of  navigation  laws.    Favors  drawback. 
Presented  the  compulsory  pilotage,  harbor  dues,  &e.,  as  abuses  bear 
ing  heavily  on  coasting  trade. 
If  cost  of  sliip-building  could  bo  reduced  it  would  revive.    Favors 

drawback. 
Letter  of  New  York  ship-builders  and  ship  mechanics.   Ship-building. 

almost  gone,  but  can  bo  revived. 
Cost  of  iron  ship-building.    Character  of  ships  built  at  Wilmington, 

Del.    High  rates  of  wages  and  duties.    Superior  quality  of  Ameri 
can  iron.    Favors  a  drawback. 
A  drawback  would  bo  of  material  help  to  ship-building.    Opposes 

bounties. 
Admit  British  ships  to  registration  and  American  ship-building 

would  cease.    Present  condition  of  business.    Favors  drawback. 
Letter  giving  present  condition  of  iron  ship-building  interest.  Causes 

of  depression  and  remedies. 

Urges  the  remission  of  duties  in  interest  of  ship-builders 

Favors  drawbacks.    Urges  the  value  of  efficient  mercantile  marine. . 

Favors  free  trade  in  ships  as  speediest  means  of  reviving  commerce. . 

Letter  setting  forth  depressed  condition  of  ship-building  in  New 
York,  &c. 

Statement  with  regard  to  underwriting.    Favors  remission  of  duties 

With  drawback  Americans  could  compete  in  ship-building  and  run 
ning. 

Favor  of  remitting  all  duties  on  ship-building  materials 

Where  the  ownership  of  vessels  built  in  Maine  usually  belongs.  Co 
operation.  Favors  drawbacks. 

Against  a  rapid  contraction  of  tho  currency.  Reduction  of  interest 
and  duties  necessary  to  revive  commerce. 

Favors  homo  ship-building.  Great  decrease  of  our  commerce.  Urges 
drawbacks  and  subsidies. 

Submits  letter  on  cost  of  ship-building  materials.  Cost  of  iron  ships 
here  and  in  England.  Depressing  effect  of  high  tariff. 

Charterer  of  vessels.  Thought  the  eight-hour  law  injuriously  affect 
ing  cost  of  repairs  and  building. 

Only  remedies  for  improving  carrying  trade  arc  cheap  ships,  good 
insurance  system,  and  power  to  borrow  on  this  security. 

American  wooden  ships  can  bo  built  as  cheap  as  English  with  draw 
back,  but  not  iron.  Specification  of  iron  sailing  ship.  Rates  on 
iron.  Underwriters  dealt  unfairly  by  our  builders. 

Ability  to  build  iron  ships  would  decide  whether  wo  could  maintain 
a  commercial  marine.  Opposes  repeal  of  navigation  laws. 


292 


INDEX. 

Testimo  ny — C  ontinued . 


Name. 

Subject. 

Page. 

Nickerson,  F.  

Rebate  on  coal  demanded  by  steam  navigation  interest  

119 
56 

52 
183 

176 
25,166 
167 

167 
126 

138 

147 
31 

125 
3,7 

65 

167 
19 

1:50 
160 

156 
167 

87 

121 

37 
40,  167 

14 
68 
32 

152,  154 

37 

167 

Opdvke  Georce 

Favors  a  drawback.    Proposes  gradual  abandonment  of  protective 
system. 
A  drawback  on  imported  materials  demanded.    Free  trade  in  ships 
would  not  enable  us  to  compete  with  England. 
Present  condition  United  States  Navy.    Cost  during  the  war.  Value 
of  swift  mail  steamers  for  defense.    Necessity  as  a  war  measure 
of  aiding  our  mercantile  marine. 
Decrease  of  our  carrying  trade.    Opposes  admission  of  foreign  ships. 
Favors  drawback.     Subsidies  to  mail  steamers  and  bounties. 
Superior  character  of  American  iron  and  labor.     With  drawback 
American  ships  can  be  built  as  cheap  as  British. 
Believed  the  day  of  wooden  ships  was  not  over.     Something  more 
than  a  drawback  was  needed  to  revive  our  business. 
Letter  of  New  York  ship-builders  and  ship-mechanics 

Poillon  Mr 

Porter,     Yice-Admiral 
D.D. 

Roach,  John  

Rowland  T   F 

Rowland,  William  
Russell,  Robert  A  

Ryan,   Captain  Wash 
ington. 

Sargent,  Cyrus  F  

Asks  a  thorough  revision  of  laws  relating  to  merchant  seamen  and 
officers.    Our  marine  deteriorating.     Opposes  repeal  of  navigation 
laws  and  favors  drawbacks. 
Wooden  ships  could  be  built  and  sold  with  a  drawback.    Opposes 
repeal  of  navigation  laws.    Ship-building  not  paying  enough  to  in 
duce  capital  to  enter  into  it. 
Cost  of  materials  now  and  in  1860.    Rates  of  wages.    With  protection 
Americans  can  build  iron  ships. 
Superiority  of  American  iron.     A  drawback  would  relieve  ship 
building. 
Asks  for  a  remission  of  duties  on  imported  iron,  &c 

Simpson,  James  E  
Smith,  L.  A  

Smith,  Franklin  W  .  .  .  . 
Snow,  Ambrose  

Spofford  Paul  M 

Free  trade  would  revive  the  carrying  trade.     A  drawback  would 
help  ship-building. 
Favors  admission  of  foreign  vessels  to  American  registration,  except 
coasting^  trade.    Also  drawbacks  and  subsidies  to  mail  steamships. 
Letter  of  New  York  ship-builders  and  ship-mechanics  
Iron  ships  could  be  built  as  cheaply  as  in  Great  Britain  with  a  draw 
back  on  imported  material.    Superiority  of  American  models. 

Stark,  Thomas  
Stimers,  A.  C  .   . 

Sturdivant,       Captain 
Cyrus. 
Stump,  John  F 

Depreciation  of  currency  chief  cause  of  depression  in  navigation 
interests. 
On  British  policy  with  regard  to  our  commerce.    Favors  a  drawback  .  . 
Letter  of  New  York  ship-builders  and  ship-mechanics 

Tatum  Henry 

Taff,  David  J  

Taylor  John 

Depressed  condition  of  ship-building  in  Massachusetts.    Rates  of 
wages.    Opposes  repeal  of  navigation  laws.    Favors  drawbacks. 
American  commerce  could  be  revived  if  government  aided,  as  was 
the  case  in  Great  Britain  and  elsewhere.    Favors  drawbacks  and 
subsidies.    Advantage  to  the  West. 
Declares  New  York  ship-owners  opposed  to  registering  foreign-built 
ships.     Favors  remission  of  duties  and  taxes. 
Ship-builders  have  neglected  their  interests.     Iron  must  be  used. 
Favors  drawback.    Private  yards  best  for  building  naval  vessels. 
Urged  the  granting  of  subsidies  to  ocean  mail  steamers  

Tobey  E  S 

Webb,  William  H 

Westervelt  D  D 

Wetmore,  Prosper  M  .  . 
Whitlock,  William  
Williams,     Mr.    (Wil- 
liams  &  Guion.) 
Windsor,  Henry  

Wilson,  Allston 

Change  in  motive-power.    Substitution  of  steam  for  sail  

Change  from  wood  to  iron  caused  depression  in  shipping  interests. 
Steamships  profitable  without  subsidies. 
Believed  iron  vessels  could  be  built  for  commercial  use  in  peace,  and 
naval  purposes  in  war.    Steam  navigation  has  affected  the  use  of 
American  ships.    Demands  a  drawback. 
Recommends  repeal  of  laws  requiring  crews  and  officers  to  be  mainly 
American.    Free  ships  and  tree  sailors. 
Letter  of  New  York  ship-builders  and  ship-mechanics        .  .    ... 

Youngs,  Joshua  

INDEX.  293 

LETTERS  FROM  AMERICAN  SHIP-BUILDERS  AND  OWNERS. 


Name  and  residence. 


Subject. 


Bailey,  John  H.,  Ports 
mouth,  N.  H. 

Brewster,  John,  Cape 
Nedick,  Me. 

Buck.  R.  P.,&  Co.,  Now 
York. 

Day,  Joseph,  Damaris- 
cotta,  Me. 

Egan,  "Wiley  M.,  Chi 
cago. 

Forbes,  R.  B.,  Boston. . 

Gibbons,  Wm.  G.,  "Wil 
mington,  Del. 

Gillan,  N.  M.,  (attorney 
for  W.  H.  Webb,) 
New  York. 

Huston  Caleb  S.,  East- 
port,  Me. 

McKay,  Donald,  East 
Boston. 

Metealf,  B.  D.,  Au 
gusta,  Me. 

Metzgar,  C.,  (as  attor 
ney  for  W.  H.  Webb,) 
New  York. 

Neal,  Mathews  & 
Brooks,  Kittery,  Me. 

Perew,  Frank,  Buffalo. . 

Player,  John.  Phila 
delphia. 

Simpson,  Jas.  E.,  New 
York. 

Taylor,  Isaac,  Boston  . . 

Thayer     &     Lincoln, 

Boston. 
Tucker,  Joseph,  Wis- 

casset,  Me. 
Upton,      George     B., 

Boston. 
Wales,   Thomas  B.,  & 

Co.,  Boston. 
Webb,  Wm.  H.,  New 

York. 


Cost  of  ships,  rates  of  wages,  &c 

Cost  of  ship-building  in  1860-'G9 , 

Letter  and  tables  giving  costs  of  running  ships  of  various  burdens  . . 

Cost  of  ship-building  in  18GO-'69 

Cost  of  ship-building  on  the  lakes 

Wages 


English  and  rebel  causes  affecting  our  commercial  marine. 

building  of  swift  steamers,  &c. 
Cost  of  building  iron  ships 

On  composite  ships 


Letter  relating  to  ship-building,  rates  of  wages,  decline  of  business. 

Duties  on  ship-building  materials 

Cost  of  ship-building  in  1854-'60-'69 

Letter  on  composite  ships 


Letter  on  cost  of  ship-building  in  1860-'G9.    Rates  of  wages,  <fec 

Cost  of  building  ships  now ;  in!860-'69 , 

Capacity  of  western  rivers  for  iron  ship-building 

High  price  of  materials  and  labor 

Letter  favoring  drawbacks  and  free  trade  in  raw  materials ;  also  favor 
ing  subsidies. 

Letter  on  remedies  needed.  Drawbacks.  Change  of  laws  relating  to 
seamen,  &c. 

Letter  showing  great  decline  of  shipping  interests,  &c 


Two  letters  and  petition,  relating  to  causes  of  decay  of  commerce. . . 

Letters  -urging  free  ships,  drawbacks,  and  free  ship  stores , 

Letter  from  San  Francisco  on  composite  ships 


LETTERS  FROM  UNITED  STATES  CONSULS. 


Name  and  consulate. 


Subject. 


Dudley,    Thomas    H., 
Liverpool. 

Hana,  S.  B.,  Kingston, 
Ontario. 

Hanson,  R.  M.,  Bremen. 

Jackson,  M.  M.,  Hali 
fax,  Nova  Scotia. 

Meetscher,    L.,    (vice- 
consul,)  Copenhagen. 

Morse,    Freeman    H., 
London. 
Do... 


Robinson,  Charles,  Que 
bec. 

Scammon,  E.  Parker, 
Prince  Edward  Island 

Tato,  Alexandra,  Hay  ti 

Warner,  D.  B.,  St.  John, 
New  Brunswick. 

Webster,  William  P., 
Frankfort-on-the-M'n 


Cost  of  ships  in  Great  Britain,  wages  of  seamen,  &o , 

Ship-building,  cost,  wages,  condition  of  trade 

German  laws  affecting  navigation  interests 

Condition  of  ship-building 

Condition  of  Danish  ship-building.    Laws  relating  thereto 

Condition  of  the  English  navy  ship-building.    Mail  steamship  service. 

Causes  of  American  decadence,  &c. 
On  composite  ships ;  and  inclosing  letters  on  price  of  ships,  <tc.,  at 

London  and  Sunderland,  England. 
Condition  of  ship-building,  rates  of  wages,  cost  of  vessels,  &c 

Cost  of  ships.    Condition  of  trade 

Condition  of  American  commerce  in  the  West  Indies 

Cost  of  ships,  condition  of  trade,  &c. ;  also  rates  of  insurance  at 

Lloyds'. 
Conditi 


.on  of  German  main,  naval  and  commercial,  with  tables . 


294 


INDEX. 

STATISTICAL   TABLES. 


Number. 


Subject 


m.. 
rv.. 
v... 

VI.. 

vn. 


vm. 


IX. 


x.. 

XI. 


xn.. 
xm. 


XIV 
XV.. 


XVI... 

xvn.. 

XVIII. 


XIX. 

xx.. 


XXI. 


xxn.. 
TTKTTT 


XXV. 
XXVI. 


xxvn.. 
xxvin. 


xxxn. 


xxxm 


XXXIV. 


British  navy,  armament  and  tonnage 

Number,  names,  toimage,  location,  &c.,  of  vessels  connected  with 

United  States  Navy. 
Vessels  built  for  United  States  Navy  from  April  1,  1861 

Vessels  sold  by  Navy  from  1861  to  1865,  and  from  May  1,  1868 

Number  and  tonnage  of  vessels  built  and  registered  in  Great  Britain . 

United  States  and  British  registered  vessels  employed  in  foreign  trade. 

Total  number  and  tonnage  of  vessels  registered  as  belonging  to  the 
United  Kingdom,  including  Jersey,  Guernsey,  and  the  Isle  of  Man, 
at  the  end  of  each  year. 

Table  showing  the  tonnage,  respectively,  of  American,  British,  and 
French  vessels  which  entered  and  cleared  at  the  ports  of  countries 
to  which  such  vessels  belonged  in  trade  with  other  countries. 

Table  showing  the  licensed  and  enrolled  tonnage  of  the  United  States 

.  engaged  in  the  coastwise  trade,  and  the  tonnage  of  the  British  reg 
istered  vessels  engaged  in  -Mie  home  trade,  during  the  years,  respect 
ively,  from  1850  to  1888,  both  inclusive. 

A  comparative  view  of  the  tonnage  of  the  United  States  from  June 
30, 1850,  to  June  30, 1869,  showing,  separately,  the  tonnage  of  sailing 
and  steam  vessels,  and  the  yearly  increase  or  decrease  of  each  class. 

A  statement  exhibiting  the  amount  of  registered  tonnage  of  the  Uni 
ted  States,  steam  and  sail,  employed  in  navigation  annually,  from 
1850  to  1869,  inclusive,  and  the  annual  increase  or  decrease  of  each 
class. 

Table  showing  the  tonnage  of  the  United  States,  June  30, 1869 

Statement  showing  the  number  and  class  of  vessels  built,  and  the 
tonnage  thereof,  in  the  several  States  and  Territories  of  the  United 
States  from  1850  to  1869,  inclusive. 

Total  summary  of  the  tonnage  of  the  United  States,  Juno  30, 1869,  as 
reported  to  the  Bureau  of  Statistics. 

A  table  showing  the  amount  of  American  and  foreign  tonnage  entered 
the  ports  of  the  United  States  from  foreign  countries  in  1830, 1840, 
1850,  and  from  1860  to  1869,  both  inclusive. 

Table  showing  the  estimated  value  of  American  foreign  carrying 
trade  during  years  from  1860  to  18G9,  both  inclusive. 

Table  showing  the  estimated  value  of  American  coastwise  and  inland 
carrying  trade  during  the  ten  years  from  1860  to  1869,  both  inclusive. 

Table  showing  the  total  foreign  commerce  of  the  United  States  during 
each  year  from  1850  to  1869,  inclusive. 

Total  exports  of  domestic  and  foreign  merchandise  combined 

Table  showing  the  amount  of  foreign  merchandise  imported  into  the 
United  States  in  American  and  foreign  vessels,  respectively,  during 
the  fiscal  years  from  1850  to  18C9,  both  inclusive.  (Expressed  in 
specie  value  at  foreign  ports  of  exportation.) 

Statement  exhibiting  the  arrival  and  departure,  at  certain  specified 
ports,  of  American  and  foreign  vessels,  in  certain  portions  of  the 
foreign  trade  of  the  United  States,  1856  to  1860,  and  1865  to  1869, 
both  inclusive. 

Statement  exhibiting  the  entrances  and  clearances  of  vessels  from 
and  to  each  principal  foreign  country  for  the  two  periods,  1850  to 
1859,  and  1860  to  1869,  all  inclusive. 

Statement  of  steamers  making  regular  trips  between  ports  of  the 
United  States  and  .foreign  ports,  in  1860  and  in  1869. 

Steamship  lines  from  various  ports  of  the  United  States  to  foreign 
ports. 

Statement  of  American  steam  lines  making  regular  trips  between 
ports  of  the  United  States  and  foreign  ports. 

Comparative  statement  of  English  steamers  entered  and  cleared  at 
Portland,  Maine,  during  the  fiscal  year  I860,  and  during  the  fiscal 
year  1869,  for  transatlantic  ports. 

Steamship  lines 

Statement  exhibiting  the  value  of  total  trade  of  the  United  States 
with  foreign  countries,  as  divided  between  American  and  foreign 


Imports,  exports,  and  re-exports,  1850  to  1859,  inclusive;  imports, 
exports,  and  re-exports  1860  to  1869. 

Amounts  paid  to  American  and  foreign  steamships  for  the  sea  con 
veyance  of  United  States  mails  from  1860  to  1869,  inclusive. 

Statement  of  the  rates  of  duty  upon  the  descriptions  of  iron  most 
used  for  ship-building  under  various  tariffs. 

Table  showing  the  number  and  tonnage  of  sailing  and  steam  vessels 
built  and  registered  at  ports  in  the  British  possessions,  (exclusive 
of  the  United  Kingdom,)  in  each  of  the  years  from  1853  to  1868, 
both  inclusive. 

Table  showing  the  imports,  domestic  exports  and  foreign  re-exports 
of  the  United  States  in  American  and  foreign  vessels,  and  the 
same  combined,  showing  the  total  value  of  the  foreign  carrying 
trade  of  tho  United  States,  in  American  and  foreign  vessels,  dur 
ing  the  fiscal  years  1860,  1866,  1867,  1668,  and  1869.  » 

Comparative  table  showing  the  value  of  imports  into,  and  exports 
from,  the  United  States  and  Great  Britain,  respectively,  during  the 
years  1867  and  1868. 


THIS  BOOK  IS  DUE  ON  THE  LAST  DATE 
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WILL  BE  ASSESSED  FOR  FAILURE  TO  RETURN 
THIS  BOOK  ON  THE  DATE  DUE.  THE  PENALTY 
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